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Turkey’s annual inflation rate at 14.60% amid COVID-19 pandemic

Turkey’s annual inflation rate at 14.60% amid COVID-19 pandemic

Turkey saw a 14.60% annual hike in consumer prices in December 2020, the country’s statistical authority said on Monday.

The annual inflation rate rose 0.57 percentage point in the month, up from 14.03% in November, according to the Turkish Statistical Institute (TurkStat).

The consumer price index also saw a 1.25% monthly increase, it added.

Annual inflation in December 2019 was 11.84%.

The highest annual price rise was recorded in miscellaneous goods and services, transportation, and food and non-alcoholic beverages with 28.12%, 21.12% and 20.61%, respectively.

On the other hand, clothing and footwear group posted negative inflation with minus 0.32%.

“Alcoholic beverages and tobacco with 0.65%, communication with 5.73% and education with 6.84% were the other main groups where lowest annual increases were realized,” the institute said.

On a monthly basis, the highest increase was posted by furnishings and household equipment with 3.46%, while the largest decrease by clothing and footwear with 3.18%.

Last week, a group of 19 economists surveyed by Anadolu Agency projected the annual inflation in December to 14.34%.

The government’s year-end inflation target for 2020 was 10.5% as laid out in the new economic program announced in September 2020.

Lutfi Elvan, the treasury and finance minister, said the government will take a decisive stance with a holistic approach in the fight against inflation and that it will support monetary policy with structural measures.

In a Twitter post, Elvan said 2021 will be a year of reform focused on macro-economic stability.

“In this period when monetary policy is formed by focusing on inflation, the need for additional support due to the pandemic conditions will be provided through selective and targeted public finance policies.

“We will also take measures to bring financial discipline to a quality and stable structure.”​​​​​​​