Turkey's inflation rate falls in June

Consumer prices in Turkey rose 15.72% on an annual basis in June, a sharp drop in inflation rates from May, the country's statistical authority announced on Wednesday.

The annual inflation rate last month fell from 18.71% in May, according to TurkStat.

The data said June's inflation was the lowest seen in Turkey since June of last year, when it was 15.39%.

The figure was in line with market expectations.

A group of 15 economists polled by Anadolu Agency forecast Turkey's annual inflation rate in June would drop to 15.78%.

The highest price rise last month was seen in miscellaneous goods and services, up 26.88% year-on-year.

"Furnishing and household equipment with 22.51%, hotels, cafes and restaurants with 20.84%, alcoholic beverages and tobacco with 19.24%, and food and non-alcoholic beverages with 19.20% were the other main groups where high annual increases were realized," it said.

Economists also expected a slight uptick in monthly inflation of 0.08%.

TurkStat data showed that on a monthly basis, consumer prices rose 0.03% in June.

"The highest monthly increase was 2.65% in hotels, cafes, and restaurants," TurkStat said.

That sector was followed by miscellaneous goods and services with 1.86%, education with 1.50%, and health and furnishing and household equipment with 0.57% during the same period.

The 12-month average hike in consumer prices was 19.88% in June.

Over the last decade, annual inflation saw its lowest level at 3.99% in March 2011, while it peaked at 25.24% in October 2018.

As laid out in Turkey's new economic program announced last September, this year country's inflation rate target is 15.9%, followed by 9.8% next year and 6% in 2021.

According to an inflation report by Turkey's Central Bank released in April, year-end annual inflation is expected to hit 14.6% in 2019.