May Inflation Figures Revealed in Last Minute Update
Turkey Records Lowest Levels of Annual Inflation in Over a Year
According to the latest figures released by the Turkish Statistical Institute, consumer prices in Turkey witnessed a 63.72 percent year-on-year increase in May 2022. Meanwhile, domestic producer prices in the same period rose by 95.8 percent.
In May, the Consumer Price Index (CPI) increased marginally by 0.04 percent while the Domestic Producer Price Index (D-PPI) rose by 0.65 percent. In comparison to December 2021, the CPI increased by 15.26 percent, while the D-PPI went up by 7.81 percent.
The annual inflation rate in Turkey was 39.59 percent in terms of consumer prices and 40.76 percent for domestic producer prices. This figure marked the lowest level of inflation in 17 months for CPI and in 24 months for D-PPI.
The figures were released after TURKSTAT, the Turkish Statistical Institute, announced that a “zero price” methodology for natural gas would be applied in the May calculations of CPI after free natural gas was distributed to households the previous month. Thus, a significant downward effect on the general index was expected.
These figures reflect a decline in inflation levels after several months of record highs and fears over the stability of Turkey’s economy. Turkish officials stated that factors contributing to this recent decline include an increase in food production, a decline in energy prices, and a drop in foreign exchange rates.
The officials further added that the government will continue to take preventative measures to maintain stable economic conditions in the future and to encourage growth in the economy. These measures include boosting exports, reducing imports, and supporting domestic production.
