Annual inflation in Turkey rose beyond expectations to about 67% in February

In February 2024, annual inflation rates in Turkey surged to 67.07%, slightly surpassing expectations of 65.74%. This uptick followed a modest increase in January of the same year, where inflation stood at 64.86%.

Over the period spanning from 1965 to 2024, Turkey has experienced an average inflation rate of 35.06%. This has seen extremes, with the highest inflation rate hitting a peak of 138.71% in May 1980, while the lowest recorded level dipped to -4.01% in June 1968.

Turkish Treasury and Finance Minister Mehmet Simsek anticipates that annual inflation will persist at elevated levels in the coming months, driven by base year effects and the limited impact of monetary policy. However, he remains optimistic about the future, noting that the government’s economic program is yielding positive results in certain sectors. Simsek points to a promising trend in the first quarter, suggesting that net exports will bolster growth, and the current account deficit is expected to shrink to between $30-35 billion during the February-March period.