Turkey’s inflation rate took another welcome tumble in June, falling to its lowest level in four months, and easing pressure on the country’s central bank to control price growth.
Annual inflation dropped to 10.9 from 11.72 per cent last month – the weakest print since February – and a nascent sign that the stabilisation in the lira has helped keep a lid on further price rises. The reading came in lower than a forecast of 11.2 per cent from analysts compiled by Bloomberg.
Turkey has been battling with its highest inflation rate in eight years in as its currency has hit record lows against the dollar. But central bank tightening since the start of the year has helped stabilise the lira in recent weeks with the currency managing to wipe out its year to date losses last month.
Analysts now expect the Central Bank of Turkey – which targets inflation in a 3-7 per cent range – to hold steady on monetary policy, bringing an end to a tightening cycle that kicked off last last year.