Turkish monthly inflation hit 3.92% in June, lower than expected, after a plunge in the lira currency following the re-election of President Recep Tayyip Erdogan, official data showed on Wednesday.
The median of estimates in a Reuters poll predicted inflation would reach 4.84% month-on-month.
On a monthly basis, the biggest increase was seen in alcoholic beverages and tobacco prices, which rose 11.13%, while transportation prices increased 7.96%.
Annual inflation dipped to 38.21%, from 39.59% the previous month, due in part to base effects from the previous year. The poll had forecast that annual consumer price inflation (CPI) would be 39.47%, and was expected to end the year at 51.5%.
Annually, the prices of restaurants and hotels rose most, by 67.22%, followed by the health sector prices at 65.69% and food and non-alcoholic beverages at 53.92%.
Inflation surged after a late-2021 currency crisis that was sparked by rate cuts that Erdogan had called for, based on his view that interest rates cause inflation. Annual inflation touched a 24-year peak of 85.51% in October before easing.
The lira has lost some 30% of its value so far this year - and more than 20% in June alone. Erdogan won re-election in late May and has since signaled a U-turn towards more orthodox economic policies including rate hikes.
The domestic producer price index was up 6.50% month-on-month in June for an annual rise of 40.42%, according to the data from the Turkish Statistical Institute.
