RIYADH: After continuous efforts to stabilize its economy, Turkiye witnessed a slowdown in inflation last month, with the 38.21 percent annual increase significantly smaller than the 78.62 percent rise recorded in June 2022.
A report published by the Turkish Statistical Institute revealed that hotels, cafes, and restaurants saw the biggest annual increase with a 67.22 percent change, followed by the healthcare sector with 65.69 percent, and food and non-alcoholic beverages with 53.92 percent.
Housing, transportation, and clothing were the three lowest groups in terms of annual change — recording rises of 14.76 percent, 20.75 percent, and 21 percent, respectively.
On a monthly basis, June saw an increase in the inflation rate of 3.92 percent, a large spike compared to May, which recorded an increase of just 0.04 percent.
Healthcare saw the lowest month-on-month rise with 1.21 percent, while alcoholic beverages and tobacco saw the highest increase with 11.13 percent.
Last month, Turkiye’s central bank almost doubled its interest rate from 8.5 percent to 15 percent — the first hike since March 2021 — as it tried to get a grip on inflation.
The Turkish Statistical Institute report said: “In June 2023, within indices of 143 basic headings in the index, the index of 20 basic headings decreased and the index of 6 basic headings remained unchanged while the index of 117 basic headings increase.”
In May 2023, the monthly rate of change in the housing sector saw a decrease of 13.79 percent and alcoholic beverages and tobacco saw a slight increase of 0.28 percent.
Also in May, the hotels, cafes and restaurants group saw an increase of 68.98 percent in annual change followed by healthcare with 66.93 percent and food and non-alcoholic beverages with 52.52 percent.
“In May 2023, within indices of 143 basic headings in the index, the index of 25 basic headings decreased and the index of 8 basic headings remained unchanged while the index of 110 basic headings increased,” the report added.
