Annual inflation in Istanbul exceeded 55%

The consumer price index in Istanbul in June amounted to 55.19% in annual terms, transmits TASS with reference to the data of the Istanbul Chamber of Commerce.

According to the chamber, in monthly terms, retail prices increased by 3.46%, wholesale – by 4.32%. In particular, the cost of cultural events, education and entertainment increased by 6.99%, transportation and communication services became more expensive (5.11%), housing costs (3.75%) and clothes (3.2%) increased. Wholesale prices for fuel (8.36%), building materials (5.71%), food products (3.9%) also increased.

The Central Bank of Turkey for the first time since March 2021 at a meeting on June 22 increased the rate almost doubled – from 8.5 to 15%. The decision was made “to establish disinflation as soon as possible, anchor inflationary expectations and control deterioration in price behavior,” the regulator said. The Turkish Central Bank also referred to the global trend of continued inflation, noting that “for this reason, central banks around the world are taking action.” In October 2022, inflation in Turkey reached 85.5%, the worst figure in 25 years. By May 2023, inflation had consolidated at 39.6% but was still above the 5% target. After the Central Bank of Turkey suspended the rate cut in January 2023, inflation slowed down: in May 2023, according to Turkstat, it was 39.59% yoy, in April – 43.68%, in March – 50 .5%, in February – 50.5%, in January – 57.7%.

Turkish currency rate has reached historical low against the dollar – on June 7, it exceeded 23 lira for the first time. Since the May 28 elections, which resulted in Recep Tayyip Erdogan again taking over as president of Turkey, the lira has lost 13%. Over the past year, it has fallen in price against the dollar by more than 33%.