Ankara: Data released Friday by the Turkish Statistical Institute showed that Turkey's consumer price inflation rate was in line with expectations in June, with annual inflation falling to 32.11% after two months of rapid price increases.

According to National Iraqi News Agency, the institute's data indicated that the monthly inflation rate was 0.99%, in line with forecasts, while the annual inflation rate of 32.1% also matched economists' estimates. The data also showed that producer prices rose 1.80% month-on-month in June, bringing the annual inflation rate to 28.09%.

Turkish Finance Minister Mehmet Simsek said that the country's inflation reduction process resumed in June after a pause caused by rising global energy costs. Simsek added via the X platform that the decline in fuel prices and favorable prices for fresh fruits and vegetables supported expectations, and inflation will continue to decline during the remainder of the year, supported by the return of commodity prices to their normal levels, a decrease in rental inflation, and moderate demand.

The Turkish Central Bank, in its quarterly inflation report issued last May, raised its inflation forecast for the end of 2026 to 24 percent from 16 percent previously, noting that the short-term inflationary effects of a war with Iran will remain "tangible."

Turkish bank stocks fell by as much as three percent after the data was released, and the brokerage firm Gedik Yatirim said that markets had priced in the possibility of lower-than-expected inflation due to positive developments in food and energy prices.