Turkey: Inflation rises in January
Consumer prices rose a stronger-than-expected 1.35% month-on-month in January, nearly doubling December’s 0.74% monthly increase. Moreover, the print in January marked a three-month high and came on the back of higher prices for food and non-alcoholic beverages, and health. On the other hand, prices for clothing and footwear dropped markedly.
Inflation, meanwhile, also came in above market expectations, rising to 12.2% in January from 11.8% in December. January’s figure marked the third consecutive monthly rise in inflation, marking a resumption of an upward trajectory after largely trending down since October 2018. Annual average inflation, however, eased to 14.5% in January from 15.2% in the prior month. Lastly, core inflation, which excludes volatile price items such as energy and food, rose from 9.8% in December to 9.9%.
Looking ahead, inflation is expected to stay in double-digit territory this year owing to likely currency weakening due to the government’s renewed focus on achieving high economic growth, which it may prioritize over bringing down inflation, and looser monetary policy