Inflation Rate Exceeds Expectations in May, Climbs to 11.39 Percent

Photo: Adana Metropolitan Municipality

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Consumer prices in Turkey rose in May compared to the same month last year, the Turkish Statistical Institute (TurkStat) announced today (June 3).

May's annual inflation rate was up 11.39 percent from 10.94 percent in April while the monthly inflation rate was 1.36 amid the coronavirus outbreak, according to the TurkStat data.

Graphics: TurkStat

A group of 18 economists polled by Anadolu Agency on Friday predicted annual inflation figures would drop to 10.90 percent in May.

Economists also predicted a 0.92 percent monthly increase in the consumer price index, with estimates ranging between 0.50 percent at the lowest and 1.67 percent at the highest.

No monthly decreases in any group

According to the TurkStat data, the highest rates annual increase in inflation were in strawberry (40,87), carrot (27,19), apple (13,29), kids' t-shirt (13,26), kid's dress (11,94 ).

The lowest increase was in communication with 2.93 percent. Other main sectors seeing low annual increases were recreation and culture with 3.74 percent, transportation with 6.69 percent, and clothing and footwear with 7.68 percent, it said.

On the other hand, larger rises were seen in alcoholic beverages and tobacco with 21.41 percent, miscellaneous goods and services with 20.86 percent, and housing with 14.45 percent.

The lowest monthly increase was 0.16 percent in hotels, cafes, and restaurants, followed by healthcare with 0.22 percent, and food and non-alcoholic beverages with 0.24 percent.

This April Turkey's Central Bank revised its year-end inflation forecast to 7.4 percent for 2020, down from 8.2 percent, thanks to a cut in projections of the output gap and food inflation.

The government's year-end inflation target is 8.5 percent for 2020 as laid out in the government's new economic program announced last September. (HA/VK)