June CPI data out this week

ANKARA

The Turkish Statistical Institute (TÜİK) will release the closely watched inflation data for June later this week on July 3.

A recent Market Participants Survey conducted by the Central Bank showed that the monthly June inflation is expected to come in at 1.6 percent.

In May, the consumer price index (CPI) advanced by 1.5 percent month-on-month, while the annual inflation rate slowed from 37.86 percent to 35.41 percent.

Participants of the survey lowered their inflation expectations for the end of 2025 from a previous 30.35 percent to 29.86 percent.

They also trimmed their inflation forecast for the end of 2026 from 20.55 percent to 20.44 percent.

After the release of the June data, all eyes will turn to the Central Bank later this month when it meets to decide on the interest rates.

The bank’s Monetary Policy Committee (MPC) will meet on July 24.

In June, the bank kept the policy rate, the one-week repo auction rate, unchanged at 46 percent. It also maintained the overnight lending rate and the overnight borrowing rate at 49 percent and 44.5 percent, respectively.

The bank increased the policy rate from 42.5 percent to the current 46 percent in April.

After this month, the bank will hold three more MPC meetings in the remainder of the year, on Sept. 11, Oct. 23 and Dec. 11.