The Turkish Statistical Institute confirmed that it will take into account the government's decision to provide natural gas for free to households in May when calculating inflation, noting that this measure will have a "significant impact" on reducing the inflation rate in May.
The Institute indicated yesterday evening that the "zero price" method will be applied to natural gas in consumer price inflation calculations for May, and the effects of the free gas will be reflected in the calculations over the next year.
However, the Institute mentioned that there will be a strong upward impact by the end of the year, in parallel with the increase in natural gas consumption.
Natural gas holds a weight of 2.9 percent in inflation calculations. Inflation data for May is scheduled to be announced on June 5.
Hakan Kara, an academic at Bilkent University and former chief economist at the central bank, stated on Twitter that the Turkish Statistical Institute may announce zero or slightly negative inflation for May after deducting 2.4 percentage points from the monthly inflation rate thanks to free natural gas.
Prior to the parliamentary and presidential elections held this month, President Recep Tayyip Erdoğan promised in April to provide gas for free in May. Erdoğan won a new presidential term after a runoff held last Sunday.
Erdoğan also stated that the government will provide 25 cubic meters of natural gas to households for free for one year starting from May.
