Türkiye: inflation slows to 44.3% in December

Inflation continued to slow down in December in Turkey, to 44.3% over one year, compared to 47.1% in November, according to official figures published Friday. The rise in consumer prices, fueled by the weakness of Turkish lira, stood at 1% over one month Last week, the Turkish central bank lowered its key rate for the first time since February 2023, bringing it to 47.5% (-2.5 percentage points. ), facing a slowdown in inflation in the country.

Official Turkish statistics on price increases are disputed by independent economists at the Inflation Research Group (Enag), which publishes its readings every month. For them, the increase in consumer prices reached 83.4% year-on-year in December.

Caught in a devaluation-inflation spiral, Turkey has experienced double-digit inflation continuously since the end of 2019, making the cost of living difficult to bear for many families. To restore purchasing power to households, the Turkish government announced an increase in the minimum wage on January 1, from 17,000 pounds (467 euros) to 22,104 pounds (607 euros). This revaluation could lead to a rebound in inflation, economists have warned.