Turkish authorities are set to increase natural gas prices for industrial and residential users as of Wednesday, the country’s energy regulator said on Tuesday.
The Energy Market Regulatory Authority (EPDK) said in a statement that natural gas prices will be hiked by an average of 7.86% for industrial use and an average of 24.6% for residential users – as per state energy company – Petroleum Pipeline Corporation (BOTAŞ) prices.
Economists are estimating a potential impact of some 0.5 points on monthly inflation.
The annual inflation rate dropped to 35.4% in May, nearly half the level it was in the same period a year earlier, according to official data.
The inflation rate for June is due to be announced by the Turkish Statistical Institute (TurkStat) on Thursday.
Since the new prices would be effective as of July 2, the potential impact on the consumer price index (CPI) could be seen in the next reading.
The monthly consumer price inflation in Istanbul, the country’s largest city, rose 1.77% in June, according to data from the Istanbul Chamber of Commerce (ITO) on Tuesday. The annual inflation rate, on the other hand, slowed from 46.57% to 44.38%, the data showed.
Recent polls suggest the June annual inflation rate for the country as a whole is expected to slightly ease or flatline when compared to the May reading.
Turkish central bank forecasts inflation to fall further to 24% by the end of the year, with a wider window between 19% and 29%.
