Inflation slows for ninth consecutive month, declining below 40 percent
ANKARA
Türkiye's annual inflation rate eased for the ninth consecutive month, reaching 39.05 percent in February — the lowest level since July 2023 — according to official data released on March 3.
“We expect the steady decline in inflation to continue, thanks to fiscal and income policies supporting the disinflation process and improvements in expectations, said Finance Minister Mehmet Şimşek, commenting on the latest price data.
In core goods, annual inflation fell by 32 points compared to the same month last year, reaching 21.7 percent, while service inflation dropped by 35 points to 59.8 percent, he added.
“We will resolutely implement our policies to achieve price stability,” Şimşek reiterated.
Headline inflation decreased from 42.12% in January, falling below market expectations, showed data from the Turkish Statistical Institute (TÜİK).
Economists polled by state-run Anadolu Agency last week had projected inflation to be at 40 percent.
The cost of energy rose by 43.92 percent year-on-year in February, slightly accelerating from January’s 43.05 percent.
Food and non-alcoholic beverage prices increased at their slowest pace since November 2021, rising 35.11 percent, down from 41.76 percent in January.
Annual core inflation, which excludes volatile items such as energy and food, meanwhile, fell to a 37-month low of 40.21 percent.
On a monthly basis, the consumer price index (CPI) rose 2.27 percent, compared to 5.03 percent in January.
Food and non-alcoholic beverage prices rose by 3.2 percent last month from January, while the monthly increase in transport costs was 3.05 percent.
Restaurant and hotel prices advanced 3.12 percent month-on-month and housing costs increased by 4.6 percent, TÜİK said.
Core CPI increased 1.8 percent month-on-month, significantly lower than the 5.59 percent hike recorded in January.
In February, the Central Bank lifted its annual consumer inflation forecast for 2025 from the previous 21 percent to 24 percent, while keeping its forecast for 2026 unchanged at 12 percent.
As inflation continues to decline, the bank is widely expected to deliver another 250 bps cut to slash the one-week repo auction rate to 42.5 percent, when its Monetary Policy Committee meets on March 6.
