Istanbul inflation drops monthly 0.98% in June

etail price inflation in Istanbul fell a monthly 0.98 percent, bringing the annual rate down to 16.6 percent, the Istanbul Chamber of Commerce (ITO) said.

Wholesale prices rose a monthly 2.09 percent, ITO said on its website on Monday. The annual rate of wholesale price inflation was 19.3 percent, it said.

Turkey is in the middle of a severe economic downturn that has crimped demand for goods and services. Meanwhile, the government has cut taxes on some consumer goods, helping to limit price increases.

Nationwide consumer price inflation is expected to slow to 15.8 percent in June, below the government’s year-end estimate of 15.9 percent, according to the average estimate in a Reuters poll of 13 bankers. The monthly rate is expected to increase by 0.12 percent, it said.