Turkish inflation reaches 67.1% in February

Inflation in Turkey accelerated once again year-on-year in February, reaching 67.1% compared to 64.9% in January, according to official data released on Monday.

On a monthly basis, the rise in consumer prices, fueled by the almost continuous depreciation of the Turkish lira, stood at 4.5%. The increase in prices particularly affects food products (+71.1%), transportation (+78%), health (+81.25%), education (+91.8%), as well as hospitality and catering (+94.8%), according to the Turkish Statistical Institute.

Although high, the official figures are contested by independent economists from the Inflation Research Group (Enag), who estimate the rise in consumer prices at 122% on an annual basis. Despite regular increases in salaries and retirement pensions, inflation remains a burning issue in Turkey just a week before the start of the Ramadan month, often synonymous with increased expenses for families.

President Recep Tayyip Erdogan stated on Sunday that "anti-inflationary policies will begin to be felt concretely towards the end of the year."

Since President Erdogan's reelection in May, the new team at the helm of the Central Bank and the Ministry of Economy has raised the benchmark interest rate from 8.5% to 45% in an attempt to reduce inflation. However, the Turkish Central Bank kept its benchmark interest rate unchanged at 45% at the end of February, signaling the end of its monetary tightening cycle.