Deutsche Bank expects inflation in Turkey to exceed 53 percent

Deutsche Bank, one of the largest banks in Germany has predicted that inflation in Turkey will rise to 53.2 percent in February. The Turkish Statistical Institute (TURKSTAT) will release its February inflation data at 10:00 a.m. on Thursday, March 3. The last official inflation announced by the TURKSTAT in January was 48.69 per annum.

Deutsche Bank expects a 4 percent monthly increase in inflation in February

According to the bank, despite the VAT reductions, the annual food inflation will continue to rise. After food inflation exceeded 55 percent, the AKP government was forced to withdraw VAT on basic food products from 8 percent to 1 percent.

Economists had predicted that the VAT cuts, which came into effect from mid-February, would have a depressing effect on annual inflation of 150 basis points in two months. Bank analysts also noted that the rise in prices for restaurants and hotels would continue due to the increase in electricity and natural gas prices.