Monthly, annual inflation slow in Istanbul

ISTANBUL

Retail prices in Istanbul increased by 3.42 percent in June after rising 3.6 percent in the previous month, data from the Istanbul Chamber of Commerce (İTO) has shown.

The annual increase in retail prices also slowed from 82.2 percent in May to 82.1 percent last month.

Compared with the end of 2023, prices have risen 29.7 percent in the country’s largest city, the chamber said.

Food prices, which were up 2.35 percent in May, rose by 2.66 percent for an annualized increase of 81.6 percent.

The cost of eating out inched up 0.1 percent month-on-month, while the annual increase eased from 102 percent to 97.2 percent.

The month-on-month increase in housing expenses accelerated from 7.1 percent to 8 percent. Housing costs rose nearly 82 percent compared with June 2023.

Transportation and communication prices advanced 4.6 percent in June from May. The year-on-year increase was 89.5 percent, down from 91.4 percent in May.

The monthly and annual increases in clothing prices were 2.4 percent and 94.5 percent, respectively.

The Turkish Statistical Institute (TÜİK) will release the nationwide June inflation data on July 3.

Most economists expect the consumer price index to increase 2.2 percent in June from the previous month. The annual inflation is forecast to come in at 72.6 percent.

Consumer prices advanced 3.37 percent month-on-month in May, which brought annual inflation to 75.45 percent from 69.8 percent in April.

The Central Bank has been arguing that disinflation will be established in the second half of the year.