Turkish inflation deterioration is widespread, bank says

Turkish inflation is accelerating across the board, the central bank said, after consumer prices surged more than 15 percent in June.

Annual inflation and the main trend of core inflation rose significantly, the bank said in response to June price data published by the State Statistical Institute on Monday.

Producer-price pressure on consumer price inflation also increased significantly, the bank said in a statement on its website. The level of the lira, which has weakened about 20 percent this year, impacted durable goods prices, basic goods with a high import content and also some services, it said.

Inflation surged to 15.4 percent in June, the highest level since 2003, from 12.2 percent in May. Producer price increases accelerated to 23.7 percent from 20.2 percent the previous month, the institute said.

The acceleration in inflation raises the prospect of further rate hikes by the central bank. It has raised its benchmark rate by 500 basis points this year to 17.75 percent in an attempt to arrest the lira’s decline and put a cap on inflation.