Turkey’s inflation rate shows good performance in June
The State Institute of Statistics (DIE) announced that June inflation rate in wholesale prices (WPI) fell by 1.05% and by 0.13% in consumer prices (CPI) when compared with the figures of previous month. The decline in agricultural and food prices in June is the main factor of the major improvement in inflation. Accordingly, year-on-year WPI figure increased to 10.5% while year-on-year CPI figure remained unchanged at 8.9% level.
The core inflation rose by 1.2% in the mentioned period. The private
manufacturing sector index is mainly affected by the depreciation of Turkish currency TL and the hikes in oil prices. As a result of robust oil prices, fuel prices were raised at the end of May and on the last days of June.
The 2.7% drop in food prices caused CPI figure to reduce in June. The cumulative figure for CPI was recorded as only 3.1% in the first half of 2004. Moreover, the WPI figure is mainly affected by the agricultural prices that decreased by 8.1% in June.
The recent price hikes in the state enterprises are expected to impact the inflation in the coming months negatively. However, the decline in food and agricultural prices may offset this pressure.