Turkish inflation slows to 42.1% in January

Turkish inflation slows to 42.1% in January

/ 10:08 PM February 03, 2025

Visitors walk at the historical Grand Bazaar in Istanbul on July 9, 2024

Visitors walk at the historical Grand Bazaar in Istanbul on July 9, 2024. (Photo by Yasin AKGUL / AFP)

Istanbul, Turkey — Annual inflation slowed in Turkey in January for the eighth consecutive month, official figures showed Monday.

Consumer prices rose by 42.1 percent year-on-year, compared with 44.3 percent a month earlier, figures from Turkey’s TUIK statistics institute said.

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Turkey has experienced double-digit inflation since 2019, making life increasingly more expensive for millions of people, notably hitting the cost of education, housing, healthcare and restaurants and hotels.

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READ: Turkey’s central bank lowers benchmark interest rate to 45%

The annual rate peaked at 75 percent in May before starting to ease from June.

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On January 23, Turkey’s central bank lowered its key interest rate to 45 percent from 50 percent in December, saying its efforts to tame sky-high inflation were starting to pay off.

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The monthly inflation accelerated to five percent in January, compared to one percent the previous month, TUIK data showed.

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Finance Minister Mehmet Simsek said the increase was due to “seasonal effects” and vowed inflation would keep on falling down, in a message on X.

William Jackson, chief emerging markets economist at London-based Capital Economics, said in a policy note that a jump in monthly inflation was “always likely” given the minimum wage hike hike around the turn of the year.

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The net monthly minimum wage has been raised by 30 percent to 22,104 lira ($600), beginning from January 1.

The official inflation figures are disputed by the ENAG group of independent economists, which publishes its own monthly figures and gave a January year-on-year estimate of 81 percent.

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TAGS: Inflation, Turkey

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