ISTANBUL (Reuters) -Turkish annual inflation dipped to 35.41% in May, official data showed on Tuesday, below a Reuters poll forecast and less than half the level of more than 75% that it reached a year earlier.
Month-on-month, consumer price inflation was 1.53%, the Turkish Statistical Institute said, also below forecasts. In April, inflation stood at 3.0% on a monthly basis and 37.86% annually.
In a Reuters poll, the monthly inflation rate was expected to be 2.0% in May, with the annual rate seen at 36.1%.
Annual increases were led by education prices which were up 71.67% on the year, while housing prices climbed 67.43%. Food and non-alcoholic drinks prices rose 32.87%.
Inflation is seen at around 30% by end-2025, the poll showed, above a central bank forecast of 24%. Economists have revised up year-end inflation forecasts since March despite the central bank’s recent tightening steps.
In March, Turkish assets suffered, with the lira touching a record low against the U.S. dollar after Istanbul Mayor Ekrem Imamoglu – Erdogan’s chief political rival – was jailed pending trial over graft charges that he denies.
The domestic producer price index rose 2.48% month-on-month in May for an annual rise of 23.13%, the data showed.
(Reporting by Canan Sevgili; Writing by Daren Butler; Editing by Jonathan Spicer)
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