Turkey’s annual inflation has increased more than expected at 54.44% in February, official the data showed on Thusday.
The reading that marked a two-decade high was fueled by a slide in Turkish lira late last year and higher raw material prices.
Month-onOver the past month, the consumer price index (CPI) jumped 4.81 percent, the Turkish Statistical Institute (TurkStat) said.
Surveys had predicted annual inflation to reach 53%, while the estimate for the monthly CPI was 3.8%.
The producer price the index jumped 7.22% per harvest-month in February for an annual rise of 105%, the data showed, in a thought of the rise in commodity prices in a context of Russian-Ukrainian tensions.
Inflation has risen since last fall in the middle of soaring global commodity and energy prices and that the lira weakened after the bank in September embarked on an easing cycle, which saw son policy rate be reduced by 500 base points at 14%.
Prices have soared due to the country’s dependence on imports of energy, raw materials and many supplies.
the policy the easing came as government approve a new economic program which prioritizes growth, investment and exports, while keeping rates low.
Last month’s inflation was driven by food and non-alcoholic beverage prices, which rose 8.41% per month.on-month, while furniture prices rose 7%, eating deeper into households earnings and savings.
Every year, transportation prices jumped 75.75%, while furniture prices rose 64.83%, the data showed.
Turkey’s energy bill has skyrocketed last year like global price and demand Pink, leading Ankara will raise energy prices at start of the year of which a 50% increase in electricity prices for lower-demand households.
the government has put in place tax cuts on basic goods and subsidized a significant part amount of electricity bills, in an effort to mitigate the impact on households.
This on Monday announced a value-added tax reduction (VAT) on electricity used for for residential and agricultural irrigation purposes from 18% to 8%. This also adjusted electricity tariffs for low-consumption households.
The center bank noted in a report in January that he expects inflation to peak around May, when seen rising around 55%.
Russia invasion of Ukraine raised the prospect of same higher inflation in Turkey in coming months due to soaring energy and grain prices.
The lira has been broadly stable since start of the year following 44% decline in 2021 and was hovering just below 14 against United States dollar.
But it exceeded the level last week with the return of volatility over rising tensions between Moscow and Kyiv. Additional damping also risk of adding more pressure on prices.
The currency was little changed after inflation data on Thursday up at 14.1375 against the dollar at 7:36 a.m. GMT.
