Inflation slightly falls in June while food prices remain high
Turkey's annual consumer inflation rate decreased to 32.11% in June from 32.61% in the previous month, according to data released by the Turkish Statistical Institute (TurkStat) today.
The Consumer Price Index (CPI) rose by 0.99% month-on-month in June. The inflation rate reached 17.76% compared to December, while the 12-month average inflation rate, which is taken as the basis for rent increases, stood at 32.03%.
Food inflation remains high
The housing, water, electricity, gas, and other fuels category saw the highest annual price increase among major spending groups at 45.14%, contributing 5.92%age points to annual inflation. On a monthly basis, this category climbed 2.30%, contributing 0.27 points to the monthly shift.
Food and non-alcoholic beverages increased by 35.45% annually, adding 8.61 points, while transportation prices rose 31.15%, adding 5.19 points. The prices increased 0.17% monthly, contributing 0.04 points. Annual food inflation was 34.86% last month.
Turkey ranks fourth globally in food inflation
In contrast, transportation costs decreased by 0.05%, reducing monthly inflation by 0.01 points. Out of 174 subcategories covered in the index, prices decreased in 26, remained unchanged in 10, and increased in 138.
Pension adjustments
The announcement of the June figures also finalized the pension hike rates for the Jul-Dec 2026 period.
Retirees will receive a 17.76% increase, matching the inflation rate recorded in the first six months of the year. Retired civil servants will receive a 13.52% raise, which includes an inflation difference adjustment because the six-month inflation exceeded the 11% collective bargaining agreement increase.
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Any additional change to the lowest pension amount will require a separate legislative amendment.
Before the raise, the lowest pension stood at 20,000 liras (~427 US dollars), a baseline received by more than 4 million retirees out of over 12 million in the country.
For context, this falls significantly short of the hunger threshold calculated by the Türk-İş labor union federation, which estimated the minimum monthly food expenditure for a family of four to maintain a healthy diet at over 47,000 liras in May. (HA/VK)
