ISTANBUL, Turkey – Turkish inflation saw a significant increase in January, with the consumer price index rising by 6.7% from December, marking the biggest monthly jump since August. The Turkey Central Bank’s figures revealed a year-on-year inflation rate of nearly 65%, highlighting the country’s ongoing struggle with rising prices.
The 85 million people of Turkey experienced a 64.86% annual increase in the consumer price index, slightly up from the 64.77% recorded in December. Sectors that saw the largest monthly price rises included health at 17.7%, hotels, cafes, and restaurants at 12%, and miscellaneous goods and services at just over 10%. The only sector to show a monthly price decrease was clothing and footwear, with a decrease of -1.61%.
In addition, food, beverages, and tobacco, as well as transportation, saw month-on-month increases between 5% and 7%, while housing was up by 7.4% since December.
The Turkish Central Bank has been actively working to combat inflation by implementing eight consecutive interest rate hikes since May 2023, totaling 3,650 basis points. The bank’s most recent hike, which took place on January 25, raised the key interest rate by 250 basis points to 45%.
These latest inflation figures reflect the ongoing economic challenges facing Turkey and the efforts being made by the central bank to stabilize prices. The impact of inflation extends beyond the individual consumer, affecting businesses and overall economic stability. It remains to be seen how these measures will impact the long-term trajectory of inflation in Turkey.