The annual rate of inflation is expected to fall to 43.75% by the end of 2024 (Shutterstock)
Official data showed on Wednesday that the annual inflation rate in Turkey rose to 68.5% last March, which was slightly lower than expectations after the ruling Justice and Development Party lost the local elections for reasons including the high cost of living, according to what Reuters reported.
The Statistics Institute of Turkey said that inflation on a monthly basis reached 3.16%, down from 4.53% in February and 6.7% last January, and this is mainly due to the decline in the impact of salary adjustments and the rise in prices at the beginning of the year.
A Reuters poll expected annual inflation to rise to 69.1% last March, a monthly increase of 3.5%.
The annual rate is expected to decline to 43.75% by the end of 2024.
The Justice and Development Party, led by President Recep Tayyip Erdogan, lost control of several regions last Sunday.
Reuters quoted analysts as saying that voters largely punished the Justice and Development Party due to the cost of living crisis that has been ongoing for years.
The central bank, as part of a strong monetary tightening cycle since last June, surprised analysts when it raised its benchmark interest rate by another 500 basis points last month, due to what it called deteriorating inflation expectations.
Shortly after the data was released, Finance Minister Mehmet Simsek said the recent monetary and fiscal tightening would help stabilize inflation expectations.
“We will do whatever is required, until we achieve our goal of price stability, which is our main priority,” he said on the X social media platform.
Source: Reuters