The Turkish central bank is set to convene for a key policy meeting this week, another one since the start of the U.S.-Israeli war with Iran, which has sharply lifted global oil prices, prompting a more cautious stance by the economic actors worldwide.
The Central Bank of the Republic of Türkiye (CBRT) will, June 11, decide whether to keep interest rates unchanged at the current level of 37% or instead potentially opt for a hike as recent data indicated a mild uptick in annual inflation in May, despite the monthly reading coming in less than the prior month.
In May, consumer prices increased 1.71% monthly and 32.61% annually, official data showed on Friday. That compared to 4.18% monthly and 32.37% annually registered in April.
The data shared by the Turkish Statistical Institute (TurkStat) revealed that although education and housing remained among the leading drivers that contributed to the annual surge in the index, transportation and food and non-alcoholic beverages also posted increases above the median.
The central bank raised its year-end interm inflation target to 24% from 16% last month, forecasting that the short-term inflationary effects of the Iran war would remain "pronounced," as the war-related surge in energy prices has impacted countries that rely on energy imports.
