Inflation hits the peak of the last 20 months

Consumer Price Index (CPI) increased by 1.08%, slightly higher than expectations, on a monthly basis. Annual inflation reached 16.19% while it rose for the sixth consecutive month and reached its highest level since July 2019.

The annual figure increased by 0.58 percentage points last month, rising from 15.61% in February, according to the Turkish Statistical Institute (TurkStat).

The highest annual price increase last month was in transportation with 24.85%, followed by furnishings, household equipment and miscellaneous goods, services with 23.64% and 21.49%, respectively.

The lowest annual increase, on the other hand, was 2.87% in alcoholic beverages and tobacco, the institute said.

Clothing and footwear prices rose by 7.43%, communication by8.01% and education by8.33%, as the other main groups that saw the lowest annual increases.

Month-on-month, the consumer price index climbed by 1.08% in March.

In March, there was no change in the transportation main group, TurkStat noted.

The lowest monthly rise was 0.04% in alcoholic beverages and tobacco, while health posted the highest monthly rise with 3.7%.

Under the new economic program announced by the government last September, Turkey’s inflation rate target for this year is 8%, while the Central Bank’s year-end inflation forecast for 2021 is 9.4%.

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