ISTANBUL, Jan 3(V7N) – Turkey's annual inflation rate continued its downward trajectory in December, easing to 44.3%, compared to 47.1% in November, according to the Turkish Statistical Institute.

This marks the seventh consecutive month of slowing inflation, aligning with the central bank's revised year-end estimate of 44%, up from its earlier projection of 38% in August.

Despite a recent interest rate cut by the central bank—its first since February 2023, reducing the key rate from 50% to 47.5%—price increases have decelerated at a slower pace than expected throughout the year.

Independent economic watchdog ENAG, however, disputes the official figures, reporting a significantly higher year-on-year inflation rate of 83.4% for December.

Turkey has been grappling with persistent double-digit inflation since 2019, which reached a peak of 85.5% in October 2022, severely impacting the cost of living for millions of families

To alleviate some of the economic burden, the government implemented a 30% increase in the minimum wage, effective January 1, raising it to 22,104 lira ($600). However, this hike falls short of the 70% increase demanded by labor unions.

The economic challenges continue to strain households, even as inflation shows signs of moderation.

END/BUS/RH/