Turkey’s annual inflation hits 9.2 percent in first month of 2017

ANKARA

Turkey’s annual inflation hit 9.2 percent in January from the previous month’s 8.53 percent, making it the highest inflation rate in a year amid a decline in the Turkish Lira and a rise in food prices. 

The consumer price index rose by 2.46 percent in January, according to data released by the Turkish Statistics Institute (TÜİK) on Feb. 3. 

The highest annual price increase was seen in a 22.9 percent rise in alcoholic beverages and tobacco, while the highest monthly increase was seen in food and non-alcoholic beverages with a 6.37 percent hike, according to TÜİK data. 

The Central Bank raised its inflation forecast for the end of 2017 from 6.5 to 8 percent in its previous report.

Its forecast for inflation at the end of 2018 stands at 6 percent.

Initial indicators have showed that the inflation rate continues to increase amid declines in the lira’s value and fluctuations in food prices, the bank announced Jan. 31. 

“Risks are rising, but the critical point is that monetary policy is having the necessary effect,” Central Bank Gov. Murat Çetinkaya said, adding that the bank might take additional measures if needed and would use all available tools.

“Given a tight policy stance that focuses on bringing inflation down, inflation is expected to converge gradually to the 5 percent target. Inflation is likely to be 8 percent in 2017, and stabilize around 5 percent in 2019 after falling to 6 percent in 2018,” he said.        

The bank also increased the bank’s food inflation forecast from 7 to 9 percent.