Reflecting the slowdown in inflation, the Turkish Central Bank said the decline was mainly due to the “correction” in non-processed food prices, which relied on a decline in fruit prices.
“Annual inflation has returned to the path that was foreseen in April’s inflation report,” said the bank, in its analysis released Tuesday.
The annual inflation rate in June declined to 6.2 percent. Compared to May, it declined by 1.4 percent. Analysts said this marked decline in inflation has strengthened the Central Bank’s hand in keeping interest rates at a record low of 6.25 percent.
The biggest declines in prices were seen in cherries and plums, whose prices plummeted by 68 percent and 37.1 percent, respectively.
In its statement, the Central Bank said the most pronounced contribution to price hikes in June came from tour packages. Prices of cars and furniture also increased, while white goods prices fell, the bank noted. Meanwhile, energy prices fell by 0.1 percent in the month, reflecting the drop in global oil prices.
On the producer prices side, annual inflation increased to 10.2 percent, after June’s slight rise of 0.01 percent. Due to developments in fruit and vegetables, agricultural prices fell by 3.13 percent in the month. Wheat and sunflower prices however, rose by 1.74 percent and 5.2 percent, respectively.
After the Central Bank’s dovish analysis was published, the Turkish Lira declined against the U.S. dollar, as the latter was being traded at more than 1.627 liras at 2 p.m. in Istanbul
The U.S. dollar has gained over 1.7 percent against the lira since the start of May. In the same period, the euro appreciated by 2.8 percent against the Turkish currency. The reference given as per has been verified as the requirement of its.
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