Turkey Inflation Hits 14-1/2 Year High … RTT
Turkey Inflation Hits 14-1/2 Year High
Turkey’s consumer price inflation accelerated to a more than 14-year high in June on weaker currency.
Inflation quickened to 15.39 percent in June from 12.15 percent in May, the Turkish Statistical Institute reported Tuesday.
Economists’ had expected the inflation to rise to 13.9 percent.
Moreover, this was the strongest inflation rate since January 2004, when prices had surged 16.22 percent.
Prices of food and non-alcoholic beverages alone grew by 18.89 percent annually in June transport costs jumped by 24.26 percent.
On a monthly basis, consumer prices increased 2.6 percent from May, when it gained by 1.6 percent. The expected increase was 1.3 percent.
The much stronger-than-expected rise in Turkish inflation in June is likely to prompt the central bank to hike interest rates, perhaps by 100 basis point, at its meeting later this month, Jason Tuvey, an economist
at Capital Economics, said.
The bank had raised the rate by 125 basis points at the June meeting citing elevated inflation.
by RTTNews Staff Writer