Türkiye’s June consumer inflation rate slows to 71.6%

The Turkish Statistical Institute (TurkStat) has unveiled the inflation figures for June, crucial in determining wage increases for civil servants and retirees.

According to the latest data, inflation rose by 1.64% in June, marking an annual increase of 71.6%.

Key inflation metrics:

Monthly change: In June 2024, the Consumer Price Index (CPI) increased by 1.64% compared to the previous month.

Annual comparison: Compared to December last year, CPI rose by 24.73%, and compared to June last year, it surged by 71.6%.

Twelve-month average: The CPI change averaged 65.07% over the past year.

Least and most affected categories:

Minimal increase: Clothing and footwear saw the smallest rise, increasing by 47.84% compared to the same month last year.

Highest increase: Education recorded the highest jump, rising by 107.11% over the past year.

Sectoral shifts in June:

The clothing and footwear sector saw a decrease of 0.58% from the previous month.

Housing experienced the highest increase, up by 3.79% compared to May 2024.

Detailed index analysis:

Out of 143 categories tracked by the CPI (COICOP 5-level classification), 35 categories saw a decrease in their indices in June 2024, while five remained unchanged, and 103 categories witnessed an increase.

CPI change stood at 1.90% compared to May 2024, 25.39% compared to December last year, and 70.40% compared to June last year. The twelve-month average change was 68.25%.

Finance minister Simsek’s remarks

Treasury and Finance Minister Mehmet Simsek highlighted the beginning of a disinflationary process in response to the latest inflation data released by TurkStat. Minister Simsek pointed to a declining inflation trend, stating, “The disinflation process has begun.”

Simsek emphasized the trend implied by the seasonally adjusted three-month moving average aligns with the year-end target.

The 1.64% monthly inflation data indicates an annualized inflation of 22%. We will achieve significant success in disinflation, a key objective of our program, just as we have in financial stability, sustainable current account deficit reduction, reserve accumulation, and removal from the grey list. We will steadfastly implement our program until we achieve price stability, ensuring sustainable prosperity.

Finance minister Mehmet Simsek