Turkey's consumer price index rose 3.92% month-on-month, official data showed Wednesday. The reading was lower than Reuters' forecast of 4.84% and compares against a 0.04% increase in May.Turkey's monthly inflation rate for June came in lower than expected, despite theTurkey's consumer price index rose 3.92% month-on-month,Wednesday. The reading was lower than Reuters' forecast of 4.84% and compares against a 0.04% increase in May.
The largest gains were attributed to tobacco and alcoholic beverage prices, which jumped 11.13%, while restaurant and hotel prices inched up 4.31%. On a year-on-year basis, inflation rose 38.21%, also slightly lower than Reuters' forecasts of 39.47%. "Could have been much worse given the 25% odd FX correction seen [through] post elections and worries about FX pass thru," BlueBay Asset Management's Senior EM Sovereign Strategist Timothy Ash said via an e-mailed statement.
Ash added that the central bank will need to "work very hard to bring inflation meaningfully down from here.""With Simsek there is at least a chance of managing [through] this all without a broader systemic crisis, but there is absolutely no room for a policy error at this stage," Ash continued.as his new treasury and economy minister, who was known for his market friendly policies.