In Turkey, prices are rising massively even after the change at the top of the central bank. Inflation climbed to 67.07 percent in February, according to official data released on Monday. The sharp increase in prices was particularly noticeable in food and hotel accommodation.
Finance Minister Mehmet Simsek does not expect any relief on the inflation front in the coming months due to statistical base effects. However, from an economist’s point of view, the strong price increase is likely to ease somewhat in the current year. An inflation rate of 42.7 percent is expected at the end of the year. The central bank, under the leadership of its new boss Fatih Karahan, recently left the key interest rate at 45 percent.
It was the first monetary policy decision after the resignation of previous central bank chief Hafize Gaye Erkan on February 3, who was replaced by Karahan. It had been aggressively raising interest rates since last June to curb inflation. The monetary authorities want to maintain interest rates “until there is a significant and sustained decline in the underlying trend of monthly inflation.” At the same time, they warned, the monetary policy stance would be tightened if a significant and persistent deterioration in the inflation outlook was expected.