It is not easy to give good news about inflation. On Jan. 4, 2021, the Turkish Statistical Institute (TurkStat) announced that Turkey’s inflation in December 2020 was 1.25% and annual inflation for 2020 was 14.6%, going above and beyond market expectations.
While market inflation expectations were 14.2%, the country ended the year at 14.6%. The core inflation was 14.3%. Also, the recently announced manufacturing sector Purchasing Managers’ Index (PMI) stood at 50.8% in December. The slowdown in PMI data continues.
Exchange change effect
The details of inflation data reveal the impact of exchange rates. One of the highest price increases in subitems was seen in household goods, and especially consumer durable…