Inflationary pressures continued to weigh on the Turkish economy after consumer prices in June reportedly soared to a 24 -year high.
According to official data released by TurkStat, the annual consumer price index (CPI) hit 78.62% last month, up from 73.5% in May.
While on a monthly basis, inflation jumped 4.95% much higher than the figure recorded in the previous month at 2.98%.
Moreover, core inflation (excluding energy and food prices) was reported to increase to 57.26% from 56.04% over the same period.
Here are some details about inflation in Turkey:
In fact, inflation has hit double digits since early 2017 again, but soared higher this year following rising global energy and commodity prices.
In Istanbul, Turkey's commercial center, annual retail inflation rose 94% in June.
Turkey’s central bank’s monetary policy stance is very dovish despite rising inflation, keeping interest rates at 14% in six consecutive meetings.
The government of President Tayyip Erdogan announced a temporary increase in the minimum wage for the first time in six years to nearly 30% on Friday. In January, Turkey raised its minimum wage by 50.5%.
The lira continued to underperform against other emerging markets this year, depreciating more than 20% against the US dollar.
While inflationary pressures continue to rise in the country, it is seen as unlikely to change the stance of President Erdogan’s administration to continue to maintain a very loose monetary policy.
