Turkey's inflation rate over 108 percent, says ENAG

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Turkey's inflation rate has surged beyond 108 percent, according to the Inflation Research Group (ENAG), an independent group of economists releasing an alternative calculation of the inflation rate every month.

According to ENAG's findings, the monthly inflation rate stands at 8.54% and the inflation rate for the first half of the year has reached 50.53%.

The official official announcement by the Turkish Statistical Institute (TurkStat) regarding June's inflation figures is scheduled for July 5 at 10:00 a.m. The figures are expected to play a crucial role in determining salary adjustments for retirees and civil servants. The delay in this month's announcement has been attributed to the Eid al-Adha holiday.

Meanwhile, the Central Bank's Market Participants Survey reveals a shift in expectations. The projected increase in the Consumer Price Index (CPI) for June has risen from 2.49% last month to 2.81% in the latest survey. Moreover, the forecasted year-end CPI increase has soared to 38.55%.

The survey also sheds light on long-term projections, with expectations for CPI growth over the next 12 months escalating from 29.84% to 30.65%. Similarly, forecasts for the following 24 months have climbed from 17.74% to 18.12%.

In terms of the currency market, participants anticipate a year-end exchange rate of 26.18 Turkish liras per US dollar. However, the outlook for the USD/TRY rate in 12 months has risen from 24.61 to 28.99.

These mounting inflationary pressures have reverberated throughout the economy, particularly impacting the minimum wage. As of last month, the minimum wage was increased from 8,500 liras to 11,500 liras. (VK)