Turkey’s inflation rate dropped to its lowest figure since June 2023 in January, marking an eighth consecutive month of decline. The country’s economy is slowly gaining traction, with prices for housing, electricity, and recreation decreasing.
According to the Turkish Statistical Institute, the year-on-year inflation rate decreased to 42.1% in January, below market estimates of 41.3%. Core inflation, excluding food and energy prices, fell to 42.7%, its lowest level in two years.
However, month-on-month inflation rose by 5% in January, a significant increase from December’s 1%. This surge was mainly due to Turkey’s minimum wage hike. The country’s central bank had raised interest rates to combat soaring inflation, but the strategy remains contested among economists.
Despite the decline in inflation, Turkey’s consumer confidence index dropped slightly in January, influenced by lower expectations for financial situations and durable goods spending. Nevertheless, consumers remain optimistic about their economic outlook for the year ahead.
Key points:
– Inflation rate decreased to 42.1% in January
– Core inflation fell to 42.7%, its lowest level in two years
– Month-on-month inflation rose by 5%
– Consumer confidence index dropped slightly due to dampened expectations
Source: https://www.euronews.com/business/2025/02/03/eurozone-inflation-tops-forecasts-but-euro-tumbles-on-tariff-fears