The rain of price hikes has begun

The June inflation, which will re-determine the price increases and price levels in Türkiye, from the salaries of millions of employees to fuel and cigarettes, hit the brakes with an increase below expectations and remained at 35 percent. According to the data announced by the Turkish Statistical Institute (TÜİK), the consumer price index (CPI) increased by 35.05 percent on an annual basis and 1.37 percent on a monthly basis. This level, which came slightly below the market expectation of 1.45-1.60 percent per month, has a restrictive effect on civil servant and retiree salary increases, while strengthening the expectation of an interest rate reduction decision to be made by the Monetary Policy Committee, which will convene on July 24. The inflation data, which came at 35.41 percent last month, was also interpreted as adjusted to create a basis for low salary increases.

CHANCE RISE CHAMPION

The inflation led by education was topped by housing, transportation and food, which were the main expense items of citizens. While there was a 30.20 percent increase in food and non-alcoholic beverages, a 27.72 percent increase in transportation and a 65.54 percent increase in housing on an annual basis, education became the main heading that took the top spot in annual inflation with 73.33 percent. In June, games of chance became the annual inflation increase champion with a 141.23 percent increase, while the increase in university education was 108.03 percent, the increase in electricity was 85.96 percent and real rent increases were 82.97 percent. With the effect of the holiday period, the highest increase in monthly inflation was experienced in bus tickets with 23.57 percent, while breakfast cereal products were in the top 3 with 13.02 percent and games of chance with 8.70 percent.

Türkiye maintains top spot in Europe

Although June inflation gradually fell below 35 percent, it maintained its top spot in Europe and the world. Turkey continued to be the country with the highest inflation in Europe with 35.05 percent, followed by Ukraine with 15.9 percent and Russia with 9.9 percent. In the world, Venezuela was at the top of the list with 172 percent, and Turkey became the 8th country with the highest inflation after Iran. Turkey, which also ranked second in the G20 after Argentina, was at the top with higher inflation than countries such as Brazil, Mexico and Russia.

ENAG announced inflation at 68.68 percent

According to ENAG data, which made a statement together with TÜİK, the Consumer Price Index (E-TÜFE) increased by 3.05 percent in June, while the increase in the last 12 months of the E-TÜFE was 68.68 percent. The report released by the Confederation of Revolutionary Trade Unions of Turkey stated that the official inflation, which forms the basis of wage increases, does not reflect the facts, and stated that “In the first five months of the year, the decrease in the lowest civil servant salary was over 8 thousand TL, the decrease in the lowest retirement pension was 2,183 TL and the decrease in the minimum wage was 3,336 TL.”

The ceiling for rent increases is 43.23 percent

Along with the inflation rates for June announced by the Turkish Statistical Institute (TÜİK), the housing and workplace rent increase rates have also been determined. With this data, the ceiling increase rate to be applied to rents in July was announced as 43.23 percent. With the removal of the 25 percent increase limit applied until last year, the increases are realized over the last 12-month averages.