Turkey’s inflation rate resumed growth in July after eight months of slowdown, rising to 47.83 percent. The hotels, restaurants, and cafes segment, as well as health care and food and beverages, were particularly expensive. Housing costs rose the least.
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Expected growth
On a month-on-month basis, prices rose by 9.49 percent after rising by 3.92 percent in the previous month. The Turkish central bank had expected this increase. It had already announced it last week at a press conference held by new Governor Hafiz Gaye Erkan.
The central bank estimated that inflation would reach 58 percent by the end of the year, more than double previous estimates. The bank expects a return to “stability” only from 2025.
May for the first time below 40 percent
In May, inflation fell below 40 percent for the first time since December 2021. However, the official figures are regularly challenged by independent think tank ENAG, which said consumer prices rose 69.21 percent in July over the past 12 months.
Turkey’s central bank raised its key interest rate by 2.5 percentage points to 17.5 percent two weeks ago. Analysts had expected a more significant increase, with some going as high as 20 percent.
Source Czech Press Office
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