According to the Statistical Institute of Turkey (Turkstat), inflation in the country in June continued to slow down for the eighth month in a row, reaching the lowest level since December 2021 – 38.2% in annual terms. In May, consumer prices rose by 39.6% compared to the previous year. A slowdown in the rate of price growth was observed in various areas. The increase in prices for utilities in June slowed to 14.8% from the previous 20.7%, and for transport services – to 21% from the previous 23.7%. The growth rates of prices for furniture, household appliances and medical services also decreased. However, the cost of food continues to increase and in June it reached a record level for the last three months, amounting to 54% (against 52.5% in May). Core inflation, which does not take into account the prices of food, energy, tobacco products and gold, also accelerated in June to 47.3% compared to the previous 46.6%. Last month, consumer prices in Turkey increased by 3.92% compared to May, which is the highest value in the last five months. In May, their growth was only 0.04%. Recall that the Central Bank of Turkey in June raised its key interest rate for the first time in two years. The rate on seven-day REPO transactions was increased by 6.5 percentage points to 15%, which is the highest level since 2011.
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