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Turkey’s Inflation Rate Falls to 42%, Slowing Less Than Expected

  • Monthly inflation rate up to 5% in January, highest in a year
  • MUFG says, for now, central bank can continue on easing path

Shoppers in the Grand Bazaar in Istanbul.

Photographer: Kerem Uzel/Bloomberg
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Turkey’s annual inflation eased less than expected by analysts in January, in what could present a challenge to the central bank just as it began interest-rate cuts.

Consumer prices rose 42.1% year-on-year, compared to 44.4% in December, state statistics office TurkStat said Monday. The median forecast in a Bloomberg survey of analysts was 41.1%, with the highest estimate being 41.6%.