Türkiye’s Inflation Sees Biggest Monthly Jump Since August, Nears 65% YoY

Consumer price inflation in Türkiye recorded its largest monthly jump since last August, with a rise of 6.7 percent in December. (Reuters)

In January, Turkish inflation logged its biggest monthly jump since August, with a 6.7% rise from December, while year-on-year inflation hit nearly 65%, according to the Turkish central bank’s figures released Monday.
The data came after the surprise resignation late on Friday of Hafize Gaye Erkan as central bank governor. She had aggressively hiked interest rates to 45% from 8.5% since June to cool inflation.
Erkan's successor, Fatih Karahan, has pledged to maintain the tight policy.
The monthly rise in the CPI was above the 6.5% forecast in a Reuters poll. The poll predicted an annual CPI of 64.5% last month, and the measure is expected to continue rising until midyear before dipping after May.
Sectors with the largest monthly price rises were the health sector at 17.7%, hotels, cafes, and restaurants at 12%, and miscellaneous goods and services at just more than 10%. Clothing and footwear was the only sector showing a monthly price decrease, with -1.61%.
The central bank said last month that after 3,650 basis points of hiking since June, it had reached a sufficient level to ensure disinflation.
Separate data from the statistical office showed Monday that producer price inflation was 44.2% in January. Month-over-month, the index moved up 4.14%