Turkey inflation eases slightly in June as energy prices fall

The Central Bank of the Republic of Turkey (TCMB) released its June Price Development Report, showing a modest slowdown in overall consumer inflation. Energy prices fell by 0.91 % month‑on‑month, driven by a decline in international oil prices that offset rises in electricity and natural gas, leading to a 4 % drop in fuel costs.

Service price growth also decelerated, with transport services rising only 0.58 % thanks to cheaper fuel. Rent prices increased 2.66 % month‑on‑month, while annual rent inflation reached 47.87 %. Food prices displayed mixed trends: raw vegetable prices fell 2.83 %, but processed food prices remained high, with milk, bread, cereals and tea contributing to price pressure.

Overall, the main trend of consumer inflation slipped slightly compared to the previous month, with annual inflation falling by 0.84 percentage points to 28.09 %. The report highlights that the slowdown in energy and service groups is the primary driver of the modest decline in inflation.