Inflation in Türkiye slows down in July

Inflation in Türkiye slowed in July, with consumer prices rising by 33.5% year-on-year, according to the Turkish Statistical Institute (Turkstat).

This marks the fourteenth consecutive month of slowing inflation growth, reaching its lowest rate since November 2021, compared to 35.05% in June, Caliber.Az reports.

Analysts had forecast a smaller decline, expecting inflation to ease to 34.05%, according to data from Trading Economics.

Food and non-alcoholic beverages increased by 28% in July, down from 30.2% in June. Utility prices rose by 62% compared to 65.5% the previous month. Clothing and footwear saw a 10.7% increase, down from 14.5%, while prices in hotels, cafés and restaurants rose by 34.2%, a slight drop from 35.6%.

Transport service costs increased by 26.6% (June: 27.7%), and medical services rose by 37.5% (June: 38.7%).

Core inflation, which excludes food and energy prices, fell to 34.7% year-on-year in July — the lowest since December 2021 — down from 35.6% in June.

Consumer prices in Türkiye rose by 2.1% month-on-month in July, slightly below experts’ average forecast of a 2.4% increase.

Producer prices (PPI) grew by 24.2% year-on-year and 1.7% month-on-month in July, compared with 24.5% and 2.5% growth respectively in June, Turkstat said.

By Aghakazim Guliyev