Turkey’s Inflation Letup Still Intact But at Risk From Lira

  • Turkish consumer inflation rose an annual 38.2% in June
  • Price pressures remain elevated amid lira’s steep declines
Shoppers in Izmir, Turkey.Photographer: Moe Zoyari/Bloomberg
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Turkey had the smallest deceleration in consumer prices since a slowdown that began last November as one of the lira’s worst stretches in decades makes imports more expensive.

Inflation reached 38.2% in June from a year earlier, according to official data published Wednesday, slightly less than forecast and down from 39.6% in May. On a monthly basis, it picked up sharply after household gas prices were recorded as zero in May following an election pledge made by President Recep Tayyip Erdogan.