- ORIGINAL NEWS
Turkish annual inflation soars to 67% in February
- SUMMARY
Turkey’s yearly inflation rate hit a startling 67%, higher than predicted.
The increase in prices is most noticeable in hotels, cafes, and restaurants, as well as in education, health, and transportation.
This inflation surge raises concerns that Turkey’s central bank may need to raise interest rates again, despite their previous indication that they had stopped.
Food costs have skyrocketed by over 71%, adding to the financial burden on Turkish households.
Experts believe the inflation will eventually decrease, but it may not drop significantly by the end of the year.
The lira’s weakness against the dollar is a major contributor to high inflation, making imports more expensive.
Turkish policymakers wanted to avoid raising rates before local elections, but the relentless inflation may force them to reconsider.
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“Turkish annual consumer price inflation soared to 67.07% in February, the Turkish Statistical Institute said Monday, coming in above expectations.”
“The combined sector of hotels, cafes and restaurants saw the greatest annual price inflation increase at 94.78%, followed by education at 91.84%.”
“The strong figures are fueling concerns that Turkey’s central bank, which had indicated last month that its painful eight-month long rate hiking cycle was over, may have to return to tightening.”
“Persistently high inflation has been fueled by Turkey’s dramatically weakened currency, the lira, which is at a record low against the dollar.”