(Bloomberg) --

Turkey’s consumer inflation rose unexpectedly last month, snapping two months of declines, as elevated food costs offset some of the impact from weaker demand.

Prices rose an annual 11.4% in May, up from 10.9% the previous month, Turkey’s statistics agency, or Turkstat, said Wednesday. The median of 20 forecasts in a Bloomberg survey was 10.9%. Prices rose 1.4% in the month.

Key Insights

  • Energy inflation -- a key driver of broader price pressures -- rose to 5.2% in May from 3.3% the previous month
  • Food costs, which make up just over a fifth of the consumer goods basket, rose an annual 12.9%, up from 11.3% in April. Food inflation remains above the official year-end estimate of 9.5%
  • Core inflation -- which strips out the impact of volatile items such as food and energy -- rose to 10.3%, a sign that some of the underlying cost pressures are increasing


  • The currency weakened after the data release, trading 0.1% weaker at 6.7174 per dollar at 10:07 a.m. in Istanbul

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  • Consumer-price growth will finish the year at 7.4%, less than a previous forecast of 8.2%, and then decline to 5.4% by the end of 2021, according to central bank Governor Murat Uysal’s latest projections
  • Retail prices in Istanbul, the country’s largest city, rose 2.16% on a monthly basis and an annual 11.8% in May
  • The Turkish central bank’s next rate-setting meeting is scheduled for June 25

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