Türkiye's central bank said Friday the Middle East conflict had delayed the disinflation process, but deterioration in expectation has remained limited, while the slowdown in economic activity continued under tight financial conditions.
Supply shocks mainly due to the fallout from the Iran war had pushed Türkiye's headline inflation higher in April and May, but June signaled the return of a downward trend.
The annual inflation eased to 32.1% last month from 32.6% in May. The decline had stalled following a sharp rise in energy prices caused by the war launched by the U.S. and Israel against Iran on Feb. 28.
On a monthly basis, consumer prices rose 0.99% in June, slowing from 1.7% in May.
"Recent uptick in underlying inflation poses upside risks for near term inflation," Central Bank of the Republic of Türkiye (CBRT) Governor Fatih Karahan told an event in Istanbul.
