July consumer price inflation seen at 2.34 percent

ISTANBUL

Türkiye’s inflation is expected to rise by 2.34 percent in July, according to the latest AA Finans Inflation Expectation Survey, signaling an increase in consumer prices from the previous month.

The survey, conducted among 17 economists, shows monthly inflation forecasts ranging from 1.65 percent to 2.9 percent.

Based on these estimates, Türkiye’s annual inflation rate, which was 35.05 percent in June, is projected to decline to 33.9 percent in July. Consumer prices advanced 1.37 percent month-on-month in June, slowing from 1.53 percent in May. The monthly inflation rate stood at 5.03 percent in January.

Leading indicators suggest a temporary rise in monthly inflation in July due to month-specific factors, the Central Bank said in its statement accompanying the rate-setting decision on July 24, when it cut its main policy rate (one-week repo) by 300bp to 43 percent, reviving its easing cycle.

In a televised interview on July 27, Şimşek emphasized that despite internal and external economic shocks, inflation continues to decline.

The aim is to close the year with annual inflation in the 20s, targeting below 30 percent, Şimşek said.