Increase in retail prices in Istanbul slows last month, show İTO data

ISTANBUL

The pace of monthly increase in retail prices in Istanbul slowed from 4.57 percent in April to 1.66 percent in May, data from the Istanbul Chamber of Commerce (İTO) have shown.

Clothing prices rose by 9.25 percent last month from April, while the increase in food prices was 1.5 percent month-on-month. Transport and communication costs in the city, with a population of more than 15 million people, declined 0.1 percent, and property expenses were down more than 1 percent compared with April.

On the back of the May print, the annual increase in retail prices eased from 62.46 percent in April to 56.05 percent.

The monthly increase in wholesale prices, however, accelerated to 5.6 percent. In April, the month-on-month rise was 3.14 percent, according to the data from the chamber.

This brought the annual increase in wholesale prices to 70.33 percent last month from April’s 70.58 percent.

The Turkish Statistical Institute (TÜİK) will release the nationwide inflation data for May next week on June 5.

The authority said earlier this week 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.

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

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.