Turkey's May Inflation Hits 32.6% as 1.7% Monthly Rise Tops Forecasts
Updated
Updated · ING Think · Jun 5
Turkey's May Inflation Hits 32.6% as 1.7% Monthly Rise Tops Forecasts
1 articles · Updated · ING Think · Jun 5
Summary
Turkey’s annual inflation edged up to 32.6% in May from 32.4%, after monthly CPI rose 1.7% versus a 1.5% market consensus, signaling that disinflation has yet to resume.
Processed food, clothing and transportation services drove the upside surprise, with clothing contributing 0.75 percentage point and transportation 0.90 point to the headline reading.
Core inflation stayed firm, rising 2.9% on the month and lifting the annual core rate to 30.4%, while services inflation remained elevated at 41.1% even as rent inflation moderated to 49.8%.
Producer prices rose 2.8% in May, pushing annual PPI to 28.9%, with electricity, gas, food products and plastics adding pressure as oil and commodity costs remain a key risk.
Against that backdrop, ING expects the central bank to hold rates at its June meeting, though geopolitical and domestic political risks could still push the policy rate toward the roughly 40% effective funding level.