Central Bank Governor's 'inflation' message: Tightening will continue

The Turkish Statistical Institute (TÜİK) has announced the inflation data for June. The data once again remained below expectations.

According to the data released by TÜİK, annual inflation was 71.6 percent. Monthly inflation was measured at 1.6 percent, while the 6-month inflation rate was 24.7 percent.

Speaking to Reuters regarding the inflation data, Central Bank of the Republic of Turkey (CBRT) Governor Fatih Karahan said that they "will continue on their path by maintaining tightness in monetary policy to combat rising prices."

"WE ARE DETERMINED TO LOWER INFLATION"

"By maintaining tightness, we will wait for data and expectations to align with our disinflation path. We believe we still have a long way to go in this regard," said Karahan, adding, "We want to see a clear and permanent decline in the underlying trend of monthly inflation. We are extremely determined to lower inflation."

After reaching its highest level since the end of 2022 at 75.45 percent in May, inflation began to decline on an annual basis in June. According to the data released on Wednesday, while the CPI fell to 71.60 percent annually, the monthly price increase also dropped below 2 percent in June.

"IT HAS BEGUN TO REFLECT IN PRICES"

Stating that "signs of rebalancing in demand are emerging," Karahan said they see this beginning to reflect in prices as well, but emphasized that they do not draw conclusions based on a single data point.

"In this period where volatility remains high, it would not be healthy to draw conclusions based on a single data point," Karahan said, adding, "We are acting with the determination and caution of a central bank."