The annual inflation rate in Turkey accelerated for the 13th consecutive month to 78.6 percent in June of 2022, the highest since September of 1998 and surpassing market expectations of 78.3 percent. It contrasts with the much lower 17.5 percent from the corresponding period of the previous year, as the lira plunged further during the month and real interest rates remain largely negative. Costs surged for transportation (123.4 percent vs 107.6 percent in May) and housing and utilities (75.1 percent vs 63.5 percent), amid surging costs for energy (151.3 percent vs 121.1 percent). Prices also rose for food and non-alcoholic beverages (93.9 percent vs 91.6 percent), and furnishings and household goods (81.1 percent vs 82.1 percent). On a monthly basis, consumer prices jumped by 5 percent, accelerating from the 3 percent rise in the prior month.

In Turkey, the most important categories in the consumer price index are food and non-alcoholic beverages (23.7 percent of total weight); housing, water, electricity, gas and other fuels (15.9 percent of total weight) and transportation (14.3 percent). Others include: furnishings, household equipment and routine maintenance (8 percent); hotels, cafes and restaurants (7.5 percent); clothing and footwear (7.4 percent); alcoholic beverages and tobacco (5 percent). The index also includes miscellaneous goods and services (4.7 percent); communication (4.4 percent); recreation and culture (3.8 percent); health (2.7 percent) and education (2.6 percent).

source: tradingeconomics.com

Turkey’s government budget deficit widened to TRY 31.1 billion in June of 2022, from TRY 25.0 billion in the corresponding month of the previous year. Fiscal revenues soared 104.9 percent year-on-year to TRY 181.0 billion, of which TRY 152.6 billion was tax income, while spending increased 87.1 percent to TRY 212.1 billion. Considering the first half of the year, the budget showed a surplus of TRY 93.6 billion and a primary surplus of TRY 228.2 billion.

source: tradingeconomics.com

Turkish Statistical Institute

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