Last Week in Review: Turkish Economic Highlights and Regulatory Changes Shape Market Sentiment

Key Developments from Inflation to Crypto Regulations and Global Economic Indicators

Last week, significant economic announcements and regulatory shifts captured attention across markets. Here are the highlights:

  1. Manufacturing Indicator Hits Year’s Lowest Level: The Istanbul Chamber of Industry (ISO) Turkiye Manufacturing Purchasing Managers’ Index (PMI) declined to 47.9 in June, marking the lowest level of 2024 for the third consecutive month below the threshold of 50.
  2. SPK Announces Crypto Law: The Capital Markets Board (SPK) detailed the implementation of amendments to the Capital Markets Law covering regulations on crypto assets, following the enactment of the new law.
  3. Lowest Monthly Inflation in a Year: The Turkish Statistical Institute (TUIK) released consumer and producer price indices for June, indicating the slowest monthly inflation in a year. Annual inflation also declined for the first time in eight months.
  4. Retiree and Civil Servant Pay Raises Announced: June inflation data finalized pay raise percentages for millions of retirees and civil servants. Pensioners will receive a 24.73% increase, while civil servants and retirees will see a 19.30% hike.
  5. Turkish Lira’s Real Value Hits 2.5-Year High: The real effective exchange rate based on the Consumer Price Index (CPI) reached 61.90, its highest since September 2021.
  6. Fuel Tax Adjustment Linked to PPI: Following TUIK’s inflation data for the first half of the year, a proportional increase in excise tax rates on gasoline, diesel, and LPG occurred, amounting to approximately ₺2 per liter for gasoline and diesel.
  7. US Non-Farm Payrolls Exceed Expectations: Non-farm payrolls in the US rose by 206,000 in June, surpassing economists’ median forecast of a 190,000 increase according to Bloomberg’s survey.

Source: Bloomberght / Prepared by Irem Yildiz

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