Turkey: Limited Improvement in Core Inflation

Consumer prices rose by 0.5% In June on monthly basis, leading annual inflation to climb to 7.64% from 6.58%. Although the food inflation resulted in a correction as we had already expected, the worrying outlook in the core prices drew a more negative picture. Annual food inflation accelerated to 6.3% from 1.8%, while core inflation fell only to 8.7% in June from 8.8%.

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