Istanbul (Reuters)
Yesterday, official data showed that annual inflation in Turkey fell to 57.68% in January, although it was much higher than expected.
Turkey’s Institute of Statistics said consumer prices rose 6.65% on the month, nearly double the 3.8% forecast in a Reuters poll. Annually, according to the study, consumer price inflation was 53.5%. The strong monthly increase was due to price increases in the New Year, including higher prices for public transport and tobacco products in addition to food.
Yesterday, Turkish Finance Minister Nuredin Vegetarian said the country is on the verge of better days after going through a difficult period of inflation.
“Current data show that the worst of inflation is over and things will get much better in the coming months,” he added on Twitter.
Inflation reached a 24-year high of 85.51% in October, driven by unconventional interest rate cuts that began in September 2021 and caused the currency to plummet later that year.
Despite rising prices, the central bank cut interest rates from 19% to 9% from 2021, with the aim of reducing the chronic current account deficit, boosting investment with cheap loans.
Economists expect the annual inflation rate to drop to around 40% in May’s presidential and parliamentary elections, which polls suggest is a sign of stiff competition.
Source: Al Ittihad
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