Turkey posts January inflation above expectations

ISTANBUL

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Turkey’s inflation for January has risen to 1.65 percent compared with the same month a year earlier, surpassing the market expectations that were around 1.1 percent.

The 12 month average inflation rate amounted to 8.62 percent as of January, official data released today by TÜİK showed. The year-on-year figure has moved up to 7.31 percent.

The prices of alcoholic beverages and tobacco products increased most in January with a 14.26 percent hike.

“Though the figures are above the expectations, since the core figures don’t look negative, the outlook doesn’t seem critical to force the Central Bank to adjust its strategy,” İş Investment Domestic Markets Manager Yasin Demir told daily Hürriyet.

He claimed that the rise of the inflation was sourced by food prices, which had a positive impact on December inflation, which was 0.38 percent.