UPDATE - Türkiye's inflation rate slows better than market forecasts

UPDATES WITH REMARKS FROM FINANCE MINISTER; REVISES HEADLINE

By Tuba Ongun

Türkiye's annual consumer inflation rate slowed to 71.60% in June, beating economists' forecasts, according to data released on Wednesday.

The June figure fell from an 18-month high of 75.45% in May as the country's economic management expected, the Turkish Statistical Institute (TurkStat) data showed.

This was the first decline in year-on-year consumer price rises following seven straight months of acceleration.

On Monday, an Anadolu survey predicted June inflation at 72.68% on a yearly basis and 2.28% on a monthly basis.

Previously, Treasury and Finance Minister Mehmet Simsek said inflation peaked in May before entering a disinflationary path.

The highest annual rises were seen in education at 107.11% and housing at 94.72% while clothing and footwear posted the lowest increases in June with 47.84%.

Annual price rises in energy and food eased in June compared to a month earlier.

The cost of energy surged 84.58% at an annualized pace in June versus 89.68% in May, and food and non-alcoholic beverages prices climbed 68.08% versus 70.14%.

Core inflation, stripping out food and energy prices, cooled to 71.41% in June from 74.98% in the prior month.

On an annual basis, Türkiye's consumer price index rose 1.64% in June, following May's 3.37%.

Energy prices rose at a slower pace in June, up 1.43% month-on-month compared to 4.91% in May.

Food prices, on the other hand, rose 1.78% on a monthly basis in June, accelerating from May's 1.69%.

Commenting on the figure on X, Simsek said: "The disinflation process has begun."

"We will see the success we have achieved in various areas, such as financial stability, a sustainable current account deficit, reserve buildup and removal from the (Financial Action Task Force) grey list, clearly in disinflation, which is the main target of our (economic) program."

He reiterated the government's pledge to ensure rising permanent welfare by resolutely implementing the government economic program until price stability is achieved.