Economy

Turkey inflation drop hints at further rate cut to 45.0%- economist

1 Mins read

Investing.com — Turkey experienced a larger-than-expected decrease in inflation last month, falling to 44.4% from 47.1% in November.

The inflation decline was more than both our own and the LSEG consensus forecast, which predicted 46.0% and 45.2%, respectively. In terms of monthly changes, consumer prices rose by 1.0%, marking the smallest increase since May 2023 and, prior to that, May 2021.

The decrease in inflation was seen across various sectors. Food inflation, which had shown strong growth in the two months prior, eased in December. Most notably for the central bank, core inflation, which excludes volatile items like food and energy, continued to decrease. In monthly terms, core inflation was at 1.1%, reaching a multi-year low.

The Central Bank of the Republic of Turkey (CBRT) began its easing cycle last week with a 250 basis point rate cut, bringing the rate down to 47.5%.

The recent modest increase in minimum wage, which is small compared to previous hikes in Turkey, is expected to further reduce core inflation. Moreover, the inflation print “points towards another 250bp interest rate cut, to 45.0%, at the next central bank meeting on 23rd January,” according to Capital Economics economists.

“The weaker-than-expected outturn in today’s data release will probably give policymakers confidence to proceed with another 250bp cut (to 45.0%) at its meeting later this month,” the economists said.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

This post appeared first on investing.com

Related posts
Economy

UK economy seen growing by 1.5% in 2025, up from 0.9% last year – UBS

1 Mins read
Investing.com – The UK economy is tipped to grow by 1.5% in 2025, up from 0.9% last year, according to estimates from analysts…
Economy

India forecasts 2024/25 economic growth at 6.4% – government statement

1 Mins read
NEW DELHI (Reuters) -India’s economy is expected to grow 6.4% in the current fiscal year ending March, the National Statistics Office said…
Economy

US CFTC chair Behnam to step down on Jan. 20, FT reports

1 Mins read
(Reuters) -U.S. Commodity Futures Trading Commission chair Rostin Behnam will step down on the day Donald Trump is scheduled to be sworn…

    Fill Out & Get More Relevant News

    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.