Annual inflation rose to 36 percent in December

ANKARA

Turkey’s annual consumer price inflation accelerated to 36.08 percent in December 2021, from 21.3 percent in the month before, data from the Turkish Statistical Institute (TÜİK) have shown.

Consumer prices increased by 13.58 percent on a monthly basis in December after rising 3.5 percent month-on-month in November.

TÜİK reported that transport costs rose by 28.5 percent in the final month of 2021 from November, while the monthly increase in household equipment prices was 16.5 percent.

Food and non-alcoholic beverages prices exhibited a 16 percent rise on a monthly basis, the TÜİK data also showed. The annual increase in food prices stood at 43.8 percent.

Clothing prices increased 7.4 percent month-on-month for an annual rise of 20.1 percent in December and housing costs rose by 4.6 percent on a monthly basis and 28.6 percent annually.

According to TÜİK, communication costs went up 3.7 percent in December compared with November and the annual increase for this item was 8.8 percent.

In the Monetary and Exchange Rate Policy document for 2022, unveiled last week, the Central Bank said that the medium-term inflation target of 5 percent set jointly with the government has been maintained.

“The monetary policy will be formulated to bring inflation to the target gradually. In 2022, the bank will continue to implement the inflation targeting regime in a manner to create a foundation for sustainable price stability,” the monetary authority said.

Last month, the Central Bank cut its benchmark one-week repo rate by 100 basis points from 15 percent to 14 percent. In the statement issued after the rate cut decision, the bank said it would continue to use decisively all available instruments until strong indicators point to a permanent fall in inflation.