Inflation in Türkiye rose 64.77% year-on-year in December, continuing the upward trajectory expected to continue in the coming months after a significant increase in the minimum wage,
Al Arabiya reported.
On a monthly basis, inflation stood at 2.93%, according to the Turkish Statistical Institute, compared to 3.28% in November. Inflation has begun to decline month-on-month in recent months in conjunction with monetary tightening.
After years of monetary easing, Türkiye's central bank reversed course in June and raised interest rates by 3,400 basis points to 42.5% in order to control inflation.
But by the end of last year, the government raised the minimum wage for the new year by 49 percent, a larger than expected increase. Some 7 million people benefit from the minimum wage increase, and the increase is likely to help lift inflation in the coming months, according to economists.
Inflation rose after the currency crisis at the end of 2021 to reach a 24-year high of 85.51% in October 2022. The lira has depreciated against the dollar by about 37 percent over the past year.
Türkiye's central bank's net international reserves fell by more than $5 billion in the week ended Dec. 29 to $34.95 billion.
Reserves have been increasing since early June, following the presidential election, when they plunged to minus $5.7 billion, the lowest level since data began to be published in 2002.
The data also showed that the bank's total international reserves fell by about $4.7 billion in the same week.
