Retail prices in Istanbul rise 3.6 percent in May

ISTANBUL

Retail prices in Istanbul increased by 3.59 percent month-on-month in May, slowing from 4.5 percent in April, data from the Istanbul Chamber of Commerce (İTO) have shown.

The annual increase in retail prices in the country’s largest city accelerated from 78.8 percent in April to 70.33 percent last month, while prices have risen 25.4 percent since the end of 2023.

Food prices were up 2.35 percent, which brought the annual increase to 81.58 percent. The cost of eating out rose by 5.5 percent month-on-month and 102 percent year-on-year.

The monthly and annual increases in clothing prices were 6.8 percent and 96 percent, respectively, while culture and entertainment prices showed 7.7 percent monthly and 86.6 percent increases.

Transportation costs declined 0.45 percent compared with April for an annualized increase of 91.4 percent.

Housing costs were up 7.1 percent in May compared with April, bringing the year-on-year rise to 74.7 percent.

The Turkish Statistical Institute (TÜİK) will unveil the nationwide inflation data for May on June 3.

Consumer prices are expected to increase by 3 percent in the month, according to a survey by the Central Bank.

The annual inflation rate quickened from 68.5 percent in March to 69.8 percent in April as consumer prices rose 3.2 percent in the month, according to TÜİK.

The Central Bank is confident that disinflation will be established in the second half of 2024.

The decisiveness regarding tight monetary stance will bring down the underlying trend of monthly inflation through moderation in domestic demand, real appreciation in the Turkish Lira, and improvement in inflation expectations, the bank said.