Turkey’s inflation data for May has been announced. Annual inflation was expected to break a record. Inflation was 3.37 percent on a monthly basis and 75.45 percent on an annual basis in May. The effect of the end of natural gas support was felt in inflation. According to ENAG data; consumer prices increased by 5.66 percent in May compared to the previous month. Annual inflation was 120.66 percent.
Turkish Statistical Institute (TurkStat) announced the inflation figures for May. Inflation was 3.37 percent on a monthly basis and 75.45 percent on an annual basis in May. The five-month inflation difference was calculated as 22.72 percent. Inflation was realized as 62.51 percent according to 12-month averages.
According to ENAG data; consumer prices increased by 5.66 percent in May compared to the previous month. Annual inflation was 120.66 percent.
The main group with the lowest increase compared to the same month of the previous year was clothing and footwear with 50.85 percent. On the other hand, the main group with the highest increase compared to the same month of the previous year was education with 104.80 percent. By main expenditure groups, the main group with the lowest increase in May 2024 compared to the previous month was communication with 1.01 percent. On the other hand, the main group with the highest increase in May 2024 compared to the previous month was clothing and footwear with 9.60 percent.
Increase in indices of 114 main headings
As of May 2024, among the 143 core headings covered in the index, the indices of 23 core headings decreased, while the indices of 6 core headings remained unchanged. The indices of 114 core headings increased.
The change in CPI excluding unprocessed food products, energy, alcoholic beverages and tobacco and gold was 3.77 percent in May 2024 compared to the previous month, 23.05 percent compared to December of the previous year, 72.99 percent compared to the same month of the previous year and 66.53 percent compared to the twelve-month averages.
D-PPI increased by 57.68 percent annually
D-PPI (2003=100) increased by 1.96 percent in May 2024 compared to the previous month, 17.87 percent compared to December of the previous year, 57.68 percent compared to the same month of the previous year and 47.24 percent compared to the 12-month averages.
In the Central Bank’s Market Participants Survey, the inflation expectation for May was 3.04 percent. The current year-end inflation expectation decreased to 43.64 percent. Economists predicted that inflation would increase by 3 percent in April in the inflation expectations survey. Annual inflation was predicted to rise to 74.89 percent. Economists’ inflation expectation for the end of 2024 was 43.95 percent.
Inflation comments from the economy management
CBRT Governor Fatih Karahan noted that headline inflation would peak in May and then start to decline significantly. Karahan stated that they were on the verge of disinflation at this point. Treasury and Finance Minister Mehmet Şimşek also said, “The transition period in inflation is coming to an end. We are on the verge of the disinflation process.”
