Turkey maintains to record negative inflation

Turkey maintains to record negative inflation

Turkey obtained negative inflation both in CPI and WPI in the month of July. June was the first time when both indexes turned out to be negative. The decline observed in the agricultural prices and the exchange rates have continued to contribute to the negative inflation in Turkey. Officials comment that the inflation will maintain this declining trend. It becomes very likely that Turkey will be able to meet its year-end 20% CPI target, with these figures on hand. However, it must be kept in mind that the seasonality also has its impact on the declining trend. For the month of July, CPI declined by 0.4% while WPI declined by 0.5%. With this data on hand the overall increase during the first seven months of the year turned out to be 11.6% for CPI and 10.9% for WPI. According to these figures, the annual inflation has now withdrawn to 27.4% in terms of CPI and 25.6% in terms of WPI. This is the first time in 16 years that the annual inflation has dropped to 20 percentages. Meanwhile, an increase of 0.5% is recorded in the core inflation, which is the private sector of the manufacturing industry.