Official data showed today, Monday, that the annual inflation of consumer prices in Turkey decreased to 39.05% in February, which is less than what analysts expected in a Reuters poll, and its lowest level in nearly two years, before expected reduction in interest rates this week.
Annual inflation reached 42.1% in January.
According to the Turkish Statistical Institute, inflation reached 2.27% on a monthly basis last February, which is also less than expectations. In January, inflation reached 5.03% on a monthly basis and 42.12% on an annual basis.
According to a Reuters poll, the monthly inflation was expected to decrease to 2.85% in February, driven by changes in regulatory regulations reduced from the required payments from patients in public hospitals, with an expectation that the annual rate would drop to 39.90%.
The data showed that the local producers price index rose 2.12% on a monthly basis in February and rose 25.21% on an annual basis.
The Turkish lira reflected its losses against the dollar after the data and settled at 36.46.
Medical examination prices
Bloomberg quoted economic expert Haluk Boromsikji, residing in Istanbul, as saying that the partial decline in a decision regarding organized increases in the prices of medical examinations was a major shareholder in inflation less than expected, and the increases in the prices of these joint payments were a major factor in high inflation in January.
These numbers are likely to enhance expectations by reducing interest rates by the Central Bank next Thursday, and almost all analysts whose Bloomberg has sought views that policymakers will reduce the main borrowing cost to 42.5% from the current 45%.
Boromsikji added that the challenge is to ensure that inflation expectations- which policymakers highlight as a risk- are not high- amid discounts.
Family price expectations rose for the next 12 months in February.
The price groups related to rent and education remain a problem, as both witnessed the largest monthly increases last February, and the central bank said previously that the inflation of such services is still outside the scope of monetary policy impact.
Monetary policy makers raised their expectations for inflation at the end of the year to 24% from 21% last month, and the governor, Fateh Karahan, warned that the cuts are “not mechanism” and that policy makers may slow down or hang it if necessary.
