Turquie monthly inflation rate rises to 3.92 percent in June

ANKARA, July 5 (Xinhua) – Turkiye’s consumer price index rose 3.92 percent month-on-month in June, the highest since January, official data showed on Wednesday.

Annual inflation in Turkiye was 38.2% in June, according to the Turkish Institute of Statistics. The producer price index in June was up 6.50% from the previous month and 40.4% from the same month last year.

Turkish President Recep Tayyip Erdogan, who was re-elected in May, formed a new economic team last month, suggesting the country may move away from its unconventional strategy of keeping interest rates low even as inflation soars. I had high hopes for it.

To combat the rising cost of living and the devaluation of the Turkish currency, President Erdogan appointed former US-based bank executive Hafize Gay Elkann as governor of Turkey’s central bank and appointed prominent former banker Mehmed Simsek to the state coffers. appointed. and Minister of Finance.

But Turkey’s currency has continued to weaken against the US dollar after the central bank raised interest rates below market expectations last month.

The central bank raised interest rates to 15% from 8.5% in June, the first hike in 27 months. The central bank also indicated it would continue to tighten monetary policy “in a timely and gradual manner until a significant improvement in the inflation outlook is achieved.”

The Turkish lira has experienced a significant decline of over 60% against the US dollar over the past two years.

Inflation hit a 24-year high of 85.5% last October. Annual inflation has since slowed, reaching 39.6% in May.