Financial News: Turkey Inflation Slows To 39.05%; Weakest Since Mid

Turkey Inflation Slows To 39.05%; Weakest Since Mid 2023

(RTTNews) - Turkey's consumer price inflation eased for the ninth consecutive month to the lowest since mid-2023, figures from the Turkish Statistical Institute showed on Monday.

Consumer price inflation softened to 39.05 percent in February from 42.12 percent in January. This was the lowest since June 2023. The rate was forecast to slow to 39.9 percent.

The inflation was largely driven by the 94.9 percent surge in education and 70.81 percent rise in housing.

On a monthly basis, inflation more than halved to 2.27 percent from 5.03 percent in the previous month.

Another report from the statistical office showed that producer prices advanced 25.21 percent in February from a year ago. However, this was weaker than January's 27.2 percent increase and also reached the lowest since December 2020. Data showed that producer prices in the four main sectors of industry increased in February.

Prices of mining and quarrying climbed 33.24 percent and manufacturing reported a 24.76 percent rise. Producer prices of electricity, gas, steam and air conditioning prices grew 23.95 percent and advanced 57.58 percent for water supply.

Month-on-month, producer prices moved up 2.12 percent after rising 3.06 percent in the prior month.

At the January monetary policy meeting, policymakers of the Central Bank of the Republic of Turkey reduced the policy rate by 250 basis points to 45.0 percent.

Capital Economics economist William Jackson said the bank will cut interest rates by another 250 basis point at the MPC meeting this week. The repo rate is expected to end the year at 32.00 percent.

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