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Consumer prices in Istanbul rose 1.1% in June from the previous month, bringing the annual inflation rate down to 35.9%, with both figures at record lows since the current series began in 2023, the Istanbul Chamber of Commerce (ICOC) reported on Wednesday.
The data came as lower global energy prices following the U.S.-Iran agreement and the reopening of the Strait of Hormuz helped ease price pressures ahead of nationwide inflation figures due on Friday.
Wholesale prices, which correspond to producer prices, increased 3% month-on-month, bringing the annual rise to 24.7%, according to the chamber.
Transport prices fell 1% in June, reflecting easing pressure on fuel costs as oil prices retreated to pre-war levels following the U.S.-Iran agreement and the reopening of the Strait of Hormuz.
The decline helped offset increases elsewhere, with food and non-alcoholic beverage prices rising just 0.7%, one of the mildest increases among major spending categories. Clothing and footwear prices fell 2.2%, while education costs were unchanged.
Communication recorded the biggest monthly increase at 4.3%, driven by market conditions, followed by alcoholic beverages and tobacco at 4.2% and household goods at 3.1%.
Housing costs rose 2.4% amid seasonal and market-related factors, while miscellaneous goods and services increased 1.7%, restaurants and hotels 1.3%, and health prices 0.8%.
Among wholesale categories, unprocessed materials recorded the steepest monthly increase at 8.2%, followed by fuel and energy products at 3.2%, food products at 2.9%, construction materials at 0.8%, minerals at 0.5%, and chemical products at 0.1%. Textile prices were unchanged.
As Europe's largest city and Türkiye's main economic hub, Istanbul figures are closely watched by investors and economists because they often provide an early indication of Türkiye's nationwide inflation trend.
While the two indices differ in coverage and methodology, movements in Istanbul prices frequently offer clues about the direction of the national reading.
The Central Bank of the Republic of Türkiye's (CBRT) latest Survey of Market Participants projects monthly inflation of 1.4% for June, which would keep the annual inflation rate unchanged at 32.6%.
The figures also offer an early indication of the nationwide inflation trend ahead of the Central Bank's Monetary Policy Committee (MPC) meeting on July 23, when policymakers are widely expected to begin normalizing funding conditions by resuming one-week repo auctions at the 37% policy rate.
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