Turkey's inflation, prices

Prices in Turkey rose almost 18% in June

Prices rose mainly in transport, household equipment and food. Inflation is the main problem in the Turkish economy.

Prices in Turkey registered an increase of almost 18% (17.53%) during last June compared to the same month last year, according to the latest inflation data released this Monday by the Turkish Statistical Institute (TÜİK).

The report presented today by the official statistical body of the Republic of Turkey specifies that prices in the Eurasian country increased by 0.94 percentage points compared to the previous month (May), in which inflation had experienced an increase of the 16.59%.

The main increase in the cost of living in June in relation to the last year was registered in transport, with 26%, due to the increase in energy prices, with similar data also for the cost of household equipment; food prices also registered a 20% rise, while the lowest year-on-year increase was recorded in alcoholic beverages and tobacco (2.01%).

At the same time, the Producer Price Index (PPI) increased 4.01% in relation to May, with a year-on-year increase of 42.89%. Inflation data for June actually exceeds the forecasts of economists, who had projected an increase in prices that on average reached 16.97%, according to a poll carried out on Friday by the Turkish news agency Anatolia between 18 experts in economics.

The constant rise in prices and rampant inflation is one of the main economic concerns of the Turkish government, which set itself the goal of reducing it below 10% in the new package of economic reforms presented by Erdoğan last March. Despite the latest data, the Turkish Central Bank maintains its inflation forecast of 12.2% for the end of the year, while the government has set a target of 8%.