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Turkey’s monthly inflation rate for June came in lower than expected, despite the continued collapse of the lira currency following the re-election of President Recep Tayyip Erdogan.
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.
The largest gains were attributed to tobacco and alcoholic beverage prices, which jumped 11.13%.
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 thru 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.”
Last October saw Turkey’s inflation rate soar to 85%. The Turkish lira was last trading at 26.09 against the dollar.
Image and article originally from www.cnbc.com. Read the original article here.