The annual level of inflation in Turkey decreased to 35.05 percent during June last year, a little more than expected, per month of 1.37 percent, which probably increases the expectations of reducing interest rates in the coming months.
The Turkish Institute of Statistics said that inflation of food and drink prices recorded a decrease by 0.27 percent compared to the previous month, which contributed to maintaining the general level of inflation in the target path, according to Reuters.
An annual inflation has significantly decreased from its peak, which was 75 percent during May last year, paving the path to facilitate the monetary policy that began in December, but became a witness to thought in April.
In the Reuters poll, expectations indicated an annual inflation rate of 35.2 percent and monthly 1.45 percent in June. While inflation was registered in May, less than expected, at the level of 35.41 percent per year and 1.53 percent per month, which strengthened the hopes for the return of the Central Bank to reduce interest rates next summer.
Last March, Turkish assets were strong pressure, since Lira fell to the lowest historical level against the US dollar after the arrest of the mayor of Istanbul, Akram Imamoglu, the main political rival of President Recep Tayyip Erdogan and expecting a trial of corruption accusations that denies.
In April, interest rates began to compensate for the market fluctuations, since the Central Bank intervened, selling about $ 57 billion in foreign currencies, and took measures to tighten monetary policy at 700 basic points.
Last month, the Central Bank retained the interest rate by 46 percent, with a promise to continue the strict monetary policy until a steady decrease in inflation has been reached. He also emphasized that the decrease in the primary direction of inflation continued during June.
After the data was published, Lira settled at 39,885 against the dollar. The data also showed the price of local manufacturers by 2.46 percent per month in June, which registered an annual increase of 24.45 percent.
For his part, the Minister of Finance of Turkey Muhammad Shimashk said on Thursday that reducing prices for basic goods and improving inflation expectations, in addition to demand conditions, helps to continue reducing inflation in the second half of the year.
In the post about X Shimakk, he referred to the beginning of a noticeable slowdown of inflation in many sectors, including food and pronounced consumer goods, as well as in education and transportation, expecting that this trend will continue.
