ISTANBUL, July 5 (Xinhua) -- Turkey's annual inflation soared to 17.53 percent in June, mainly driven by rising prices in transportation and household goods, according to official data published on Monday.
The country's monthly inflation increased by 1.94 percent in the same month, the Turkish Statistical Institute revealed.
The highest annual price rise was reported in transportation and household goods, surging by 26.29 percent and 25.69 percent respectively.
Meanwhile, the producer price index rose by 4 percent month on month in June, making the annual increase of 43 percent.
"The tranquillity that usually occurs in the summer months in inflation in Turkey will not happen this year," said Atilla Yesilada, an analyst at GlobalSource Partners.
He added the manufacturing sector is already struggling with both supply-related problems and rising input costs.
The Turkish currency lira, which has depreciated around 15 percent against the U.S. dollar since the beginning of the year, continues to lose its value, and the partial improvement in the tourism sector is not on a scale hence unable to power up lira, Yesilada noted.
"What is needed is an urgent ... hike in the interest rate to contain this new momentum in inflation," the analyst argued.
However, Turkish President Recep Tayyip Erdogan does not favor interest rate hikes.
At a meeting held on June 17, the Monetary Policy Committee of the Central Bank decided to keep the policy rate, a one-week repo auction rate, constant at 19 percent.
The bank's year-end inflation forecast for 2021 stands at 12.2 percent, according to media reports. Enditem
