Turkey | May CPI confirms upside risks on inflation
Published on Wednesday, June 3, 2020 | Updated on Thursday, June 4, 2020
Turkey | May CPI confirms upside risks on inflation
Summary
Consumer prices increased by 1.36% in May. Therefore, annual inflation accelerated to 11.39% from 10.94% in April. Depending on the food inflation and the level of exchange rate, headline inflation could stay close to 12% in June before converging to 9% towards the end of 3Q and ending the year at near 8.5%.
Key points
- Key points:
- Consumer prices increased sizably higher than both consensus and our expectation in May.
- The upside surprise stemmed mainly from the core prices.
- Seasonally higher unprocessed food inflation continue to push the headline on the upside.
- Energy prices started to correct faster than expectations during May.
Geographies
- Geography Tags
- Türkiye
Topics
- Topic Tags
- Macroeconomic Analysis
Tags
Authors
Adem Ileri
BBVA Research - Principal Economist
Seda Guler Mert
BBVA Research - Chief Economist
Alvaro Ortiz
BBVA Research - Head of Analysis with Big Data
Documents and files
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