Turkey's inflation rate fell to 44.4% in December from 47.1% in November, exceeding expectations. The decline was more significant than forecasts from various analysts, including the LSEG consensus, which predicted a drop to 46.0%.
Monthly consumer prices increased by 1.0%, marking the smallest rise since May 2023. Core inflation, which excludes volatile food and energy prices, also decreased, reaching a multi-year low of 1.1% month-on-month.
The Central Bank of the Republic of Turkey (CBRT) initiated an easing cycle last week, reducing the interest rate by 250 basis points to 47.5%. Economists anticipate another cut to 45.0% in the upcoming meeting on January 23, 2025, as the recent inflation data supports further monetary easing.