Turkish annual inflation dropped more than expected in June from its May peak, driven by both food and non-food groups. Cumulative inflation in the first half reached 24.7% against the Central Bank of Turkey's 38% forecast for this year.
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Core inflation (CPI-C) came in at 1.7% MoM, moving down to 71.4% on an annual basis. This was supported by the relatively flat FX basket following the local elections (0.7% in June alone), though pricing behaviour and inertia in services have been the main factors continuing to put pressure on inflation.
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