Turkish Inflation Slows Less Than Forecast as Rate Cuts Loom

  • Economists expected sharper deceleration in prices last month
  • Erdogan calls for rate cuts in belief they will curb inflation

While the outlook for inflation is improving, the central bank still appears to be overly optimistic.

Photographer: Nicole Tung/Bloomberg
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Turkey’s consumer inflation slowed less than forecast, even as months of deceleration are emboldening policymakers to consider interest-rate cuts ahead of approaching elections.

Consumer prices rose an annual 57.7% last month, from 64.3% in December, state statistics agency data showed on Friday. That was faster than any estimate in a Bloomberg survey of economists, whose median was 53.8%.