Inflation surge

As the 25 percent cap on rent hikes expired as of July 2, landlords and tenants waited for the inflation data for June because if a contract is to be renewed this month, the rent hike should be in line with the 12-month average consumer price inflation.

The cap was introduced in June 2022 for two years but the government decided to discontinue it.

The European Union-harmonized consumer price index remained last month at 2.4% on an annual basis, the same level as in May, at least according to estimates Eurostat announced on Tuesday. This is the eighth lowest inflation among the eurozone member-states.

Consumer prices rose by 1.64 percent monthly in June, bringing the annual inflation rate to 71.6 percent, down from 75.45 percent in May, data from the Turkish Statistical Institute (TÜİK) have shown.

The monthly inflation was lower than the market expectation for a 2.2 percent increase in consumer prices. This was also the lowest monthly inflation recorded in 2024.

This week will see the release of some important macroeconomic data for the Turkish economy, including monthly and annual inflation statistics.

On July 3, the Turkish Statistics Institute (TÜİK) will unveil highly anticipated consumer price inflation numbers.

The "inflation of greed" in the Greek market during the period of the pandemic and the energy crisis was confirmed on Thursday by data from the Parliamentary Budget Office (PBO).

As widely expected, the Central Bank has opted to keep the policy rate, the one-week repo auction rate, stable at 50 percent.

In May, British annual inflation eased to 2.0% from 2.3% in April, marking a return to the Bank of England's target level for the first time since July 2021. This data, released by the UK's Office for National Statistics (ONS), aligns with expectations from the market, reflecting a diminishing impact of the COVID-19 pandemic and the ongoing conflict in Ukraine.

The largest contributors to inflation in the Eurozone were services, food, non-energy industrial goods & energy

The National Statistical Institute (NSI) reported deflation for the second consecutive month. In May, retail prices decreased by 0.2 percent following a 0.3 percent drop in April, according to NSI data.

The last instance of two consecutive months of deflation was in 2020, with monthly decreases recorded in March, April, May, and June.

In a widely expected move, the Central Bank has held its policy rate — the one-week repo auction rate — steady at 50 percent.