Free gas to help reduce May inflation: TÜİK

ANKARA

The Turkish Statistical Institute (TÜİK) has said that it will take a government decision on free natural gas into account when calculating the May inflation, and that it is expected to have a strong effect in pushing the inflation index down.

In April, President Recep Tayyip Erdoğan announced that consumers will not be charged for natural gas consumption at all residences in Türkiye for one month in May.

Additionally, the cost of natural gas required for kitchen and hot water consumption, which is equivalent to an average of 25 cubic meters per month, will be deducted from the bills for one year, Erdoğan also said.

“Zero price” method will be applied in the calculations of May consumer price inflation, TÜİK said.

Given the weight of the natural gas in the CPI basket, the government’s policy of free natural gas will cause a strong a downward effect on May inflation, it explained.

However, TÜİK, said there would a strong and an upward impact toward the end of the year in parallel with the increase in natural gas consumption.

The statistics authority will announce the inflation data for May on June 5.