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Turkey’s inflation rises to 68.5% on education costs

Monetary and fiscal tightening will help support disinflation, said Turkish finance minister Mehmet Şimşek Reuters
Monetary and fiscal tightening will help support disinflation, said Turkish finance minister Mehmet Şimşek

Turkey’s annual inflation rate increased to 68.5 percent in March, beating the 67.07 percent recorded a month earlier, official data showed.

The biggest monthly rise was in education, which rose by more than 13 percent, followed by communication, up almost 6 percent, The Turkish Statistical Institute said.

Food and non-alcoholic beverages, housing, and hotels, cafes and restaurants also led to a rise in inflation.

Monetary and fiscal tightening will help anchor inflation expectations and support disinflation, Daily Sabah newspaper reported, quoting treasury and finance minister Mehmet Şimşek shortly after the data was released.

He said that monthly inflation has decreased in line with the official forecast, adding that the government is determined to ensure price stability.

The median estimate of 20 economists polled by state-run Anadolu Agency estimated the annual inflation rate at 69.32 percent.

Speaking at a party meeting, President Tayyip Erdoğan admitted that high inflation greatly impacted voter behaviour, the report said, citing party sources.

Turkish central bank governor Fatih Karahan has said the country will see disinflation in the second half of the year.

“Our determined stance on monetary policy will enable us to successfully achieve our targeted disinflation path,” he said.

Last month, the central bank raised its key interest rate by 500 basis points to 50 percent from 45 percent following a deteriorating inflation outlook.

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