Turkey annual inflation surges to highest level in 2015

ANKARA

Turkish annual inflation edged above 8 percent for the first time this May, data from the Turkish Statistics Agency (TÜİK) showed on June 3. 

The annual rate of inflation rose to 8.1 percent in May from 7.9 percent the previous month, while annual inflation on a twelve month moving average basis rose to 8.45 percent over the same period, according to TÜİK data. 

The highest monthly increase was in clothing and footwear at 10.06 percent, followed by transportation with 1.76 percent, hotels, cafes and restaurants with 1.2 percent, recreation and culture with 1.1 percent and furnishings and household equipment with 0.8 percent.

On the other hand, the highest monthly decrease was in food and non-alcoholic beverages prices at 2.68 percent followed by communications at 0.16 percent.

Finance Minister Mehmet Şimşek said the trend in core inflation was good and there would be improvement in
the coming months at a televised interview after the data were revealed. He also said he expected food prices to show improvement.

Turkey’s Central Bank governor, Erdem Başçı, on April 30 raised his year-end inflation forecast to 6.8 percent from 5.5 percent, citing a weak lira and higher-than-expected oil prices.