Turkey Inflation Falls

As food prices decreased in June, especially for fruits and vegetables, the consumer price index fell monthly by 0.27%, above market expectations, bringing the annual inflation in Turkey to four-month-low level at 10.9%, according to data released by the Turkish Statistical Institute Monday, Anadolu Agency reported. The inflation data in June is also being used to determine mid-year raise rate for millions of Social Security Institution pensioners. Accordingly, the pensions will receive a raise of 6.89%. The CPI rose by 5.89% compared to December of the previous year and 9.36% on twelve months moving averages basis. The inflation rate also retreated from 11.72% in May. The new data was in parallel with recent Turkish Central Bank expectations which were released upon the institution’s latest Monetary Policy Committee Meeting in June. The highest monthly increase was in education category with 1.05%, followed by hotels, cafes and restaurants with 1.03%, miscellaneous goods and services with 0.52%, furnishing and household equipment with 0.48% and housing with 0.31%.