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Consumer prices in Turkey rose 12.15% in annual terms in January after rising 11.8% in December 2019, according to the Turkish Statistical Institute.
Analysts surveyed by Bloomberg on average predicted inflation acceleration to 11.9%.
Compared to the previous month, consumer prices in January rose 1.35%.
Acceleration of inflation in January occurred due to the dynamics of prices for alcohol and tobacco products, which jumped by 42.2% in annual terms.
Rising food prices in January slowed to 9% from 10.9% in the previous month. Now the growth rate is below the forecast of the central bank (11%).
The basic index, which does not take into account the volatile prices for food and energy, rose to 9.9%.
Monthly producer price growth accelerated in January to 1.8% from 0.7%.
Acceleration of inflation may force the Central Bank of Turkey to suspend the easing cycle of monetary policy.
In January, the regulator lowered its weekly repo rate from 12% to 11.25%, which was the most restrained step since the beginning of easing monetary policy in July.
Inflation fell from a peak above 25% after the currency crisis of 2018, as a result of which the Turkish lira fell by almost 30%. The recession that followed led to the fact that in 2019, economic growth almost stopped. The central bank responded to the crisis by raising the rate to 24%, where it remained until July last year.
The next meeting of the Central Bank of Turkey on monetary policy will be held on February 19.
source: reuters.com
Analysts surveyed by Bloomberg on average predicted inflation acceleration to 11.9%.
Compared to the previous month, consumer prices in January rose 1.35%.
Acceleration of inflation in January occurred due to the dynamics of prices for alcohol and tobacco products, which jumped by 42.2% in annual terms.
Rising food prices in January slowed to 9% from 10.9% in the previous month. Now the growth rate is below the forecast of the central bank (11%).
The basic index, which does not take into account the volatile prices for food and energy, rose to 9.9%.
Monthly producer price growth accelerated in January to 1.8% from 0.7%.
Acceleration of inflation may force the Central Bank of Turkey to suspend the easing cycle of monetary policy.
In January, the regulator lowered its weekly repo rate from 12% to 11.25%, which was the most restrained step since the beginning of easing monetary policy in July.
Inflation fell from a peak above 25% after the currency crisis of 2018, as a result of which the Turkish lira fell by almost 30%. The recession that followed led to the fact that in 2019, economic growth almost stopped. The central bank responded to the crisis by raising the rate to 24%, where it remained until July last year.
The next meeting of the Central Bank of Turkey on monetary policy will be held on February 19.
source: reuters.com
