Annual inflation ticks higher to 64.9 pct in January

Türkiye's annual inflation rate increased from 64.77 percent in December last year to 64.86 percent in January, the data from the Turkish Statistical Institute (TÜİK) showed on Feb. 5

The month-on-month consumer price inflation, which has been declining since August last year reserved course last month, but this was widely anticipated.

The monthly inflation quickened from 2.9 percent in December to 6.7 percent in January, in line with market expectations.

"Monthly inflation increased due to temporary effects. We do not expect these effects to impact the main trend of inflation," Finance Minister Mehmet Şimşek wrote on X, commenting on the latest numbers.

"We predict that starting from February, monthly inflation will decrease significantly and remain in line with our forecast path. We will see a significant decline in annual inflation in the second half of the year," Şimşek said, adding that ensuring price stability.

The main objective and priority for the Central Bank is to achieve price stability, newly appointed Central Bank Governor Fatih Karahan said in a statement on Feb. 4.

Karahan was appointed the Central Bank governor to replace Hafize Gaye Erkan, who resigned on Feb. 2 after less than a year in the job.

"We are determined to maintain the necessary monetary tightness until inflation falls to levels consistent with our target… We stand ready to act in case of any deterioration in the inflation outlook," Karahan, who had served as a deputy governor since July 2023, said in his statement.

Karahan will make his first public appearance later this week, when he will hold a briefing on the bank's first Inflation Report of 2024 on Feb. 8 in the capital Ankara.

 Monthly price increases