Turkey's Central Bank Policy Remains Constrained by Strong Underlying Inflation

Turkey's June headline Consumer Price Index (CPI) slowed to 32.1% year-on-year, with the Producer Price Index (PPI) easing to 28.1%. Despite some improvement, underlying inflation momentum remains robust at approximately 24%, which continues to restrict the Central Bank of the Republic of Türkiye's (CBRT) ability to ease its monetary policy.