Turkey’s annual inflation has increased again to 67.1 percent in February as food and beverage prices rise.
The Turkish Statistical Institute made this known on Monday, March 4, 2024.
According to the institute, on a monthly basis, inflation rose 4.5 percent in February, slower than the 6.7 percent rise logged in January.
It also said that the combined hospitality sector of hotels, cafes and restaurants saw the greatest annual price inflation increase at 94.78%, followed by education at 91.84%, while the rate for health stood at 81.25% and transportation at 77.98%
Food and non-alcoholic beverage consumer prices jumped 71.12% in February year-on-year and recorded a surprisingly large monthly rise of 8.25%.
Persistently high inflation in Turkey has been driven by the significant depreciation of the country’s currency, the lira, which has reached a record low against the dollar.
As of noon local time on Monday, the lira was trading at 31.43 to the greenback. Over the past year, the Turkish currency has lost 40% of its value against the dollar, and over the last five years, it has depreciated by 82.6%.
Meanwhile, the rising inflation figures are raising concerns that Turkey’s central bank, which recently signaled the end of its eight-month-long rate hiking cycle, may need to resume tightening monetary policy.
Last month, the Turkish central bank maintained its key interest rate at 45 percent, opting to pause after eight consecutive increases. These hikes were implemented to control consumer prices, which had stabilized at 64.9 percent in January.