Turkey's inflation rate up in May amid COVID-19

ANKARA

Consumer prices in Turkey rose in May compared to the same month last year, the country's statistical authority announced Wednesday.

May's annual inflation rate was up 11.39% from 10.94% in April amid the coronavirus outbreak, Turkish Statistical Institute (TurkStat) data showed.

A group of 18 economists polled by Anadolu Agency on Friday predicted annual inflation figures would drop to 10.90% in May.

Economists also predicted a 0.92% monthly increase in the consumer price index, with estimates ranging between 0.50% at the lowest and 1.67% at the highest.

According to the TurkStat data, the lowest annual increase in inflation was 2.98% in communication.

Other main sectors seeing low annual increases were recreation and culture with 3.74%, transportation with 6.69%, and clothing and footwear with 7.68%, it said

On the other hand, larger rises were seen in alcoholic beverages and tobacco with 21.41%, miscellaneous goods and services with 20.86%, and housing with 14.45%.

The lowest monthly increase was 0.16% in hotels, cafes, and restaurants, followed by healthcare with 0.22%, and food and non-alcoholic beverages with 0.24%.

This April Turkey's Central Bank revised its year-end inflation forecast to 7.4% for 2020, down from 8.2%, thanks to a cut in projections of the output gap and food inflation.

The government's year-end inflation target is 8.5% for 2020 as laid out in the government’s new economic program announced last September.