By Xavier Fontdegloria
Turkey's annual inflation rate declined in December for a second consecutive month to its lowest level since March, a sign of softening price pressures as commodity and energy prices ease.
The consumer price index--which measures what consumers pay for goods and services--rose 64.3% in December on year, slowing from a 84.4% increase in November, according to data from the national statistics office Turkstat released Tuesday.
Easing commodity prices, the recent stability of the lira and the statistical effect of a high base the same month a year earlier prompted the decline in annual inflation, though it remains far above the central bank's target and among the highest in the world.
Turkish inflation reached a 25-year high of 85.5% in October. Economists expect inflation to trend downward in the coming months, but the outlook largely depends on the performance of the lira.
On a monthly basis, consumer prices rose 1.2% in December compared with a 2.9% increase in November. Prices in the transportation category fell 4.1% on month.
Turkey's central bank held its policy rate at 9% on Dec. 22, ending a four-month interest-rate cutting cycle of 500 basis points. Political pressure, easing inflation and slowing economic growth could prompt the bank to ease policy further in the coming months, economists say.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
01-03-23 0228ET
