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Turkey’s inflation rate hits 12-month low in June

A teller holds Turkish lira banknotes at a currency exchange office in Istanbul on August 13, 2018. Turkey's troubled lira tumbled on August 13 to fresh record lows against the euro and dollar, piling pressure on stock markets on fears the country's crisis could spill over into the world economy. / AFP PHOTO / Yasin AKGUL

Turkey’s annualized rate of inflation stood at 15.72 percent in June, hitting a 12-month low, the statistical authority said on Wednesday, according to a report by the Xinhua news website.

The annual inflation rate last month was down approximately 3 percentage points from 18.71 percent in May, according to the Turkish Statistical Institute (TurkStat).

The data showed that inflation has dropped for a third straight month, the lowest level since the June 2018 figure of 15.39 percent.

Food inflation fell to 19.2 percent in June, a sharp decline from 28.4 percent the previous month.

The highest year-on-year increase was seen in miscellaneous goods and services, up to 26.8 percent.

The Turkish lira soared after the official data were released, standing at 5.63 against the US dollar at 1:00 p.m. Turkish time on Wednesday.

Orkun Gödek, a strategist at Deniz Yatırım, believes the downward trend in inflation is expected to continue in the coming months, while the pressure on the core of consumer price index has not been removed and the risk of inflation increasing remains.

The Turkish government announced its inflation target for this year at 15.9 percent, followed by 9.8 percent next year and 6 percent in 2021.

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