Turkey: Inflation rises in December
January 3, 2020
Consumer prices in Turkey rose 0.74% month-on-month in December, notably above the 0.38% monthly price increase recorded in November. The uptick in December was driven by a strong rise in food and non-alcoholic beverages prices while transport also became pricier, offsetting a notable drop in clothing and footwear prices.
Inflation, meanwhile, rose to 11.8% in December from 10.6% in November and core inflation, which excludes volatile price items such as energy and food, rose to 9.8% from 9.3%. Annual average inflation, lastly, eased from 15.9% in November to 15.2% in December.
Looking ahead, the inflation outlook for 2020 remains clouded in upside risks owing to potential currency volatility as the government renews its focus on lifting economic growth, which it may prioritize over bringing down inflation.
Author: Jan Lammersen, Economist