February inflation data in Turkey generally aligned with expectations.


Monthly core inflation was 0.2%, and annual core inflation was 2.5%.
Overall inflation was 0.3% monthly and 2.4% annually.
Details:
▪️Food prices continue to remain high (monthly +9.4%, annual +3.1)
▪️Energy prices increased only 0.5% annually, which had been suppressing inflation so far. However, a sharp rise in oil and natural gas prices in March could end this support.
🔸️Vehicle prices are exerting a deflationary effect due to competition. New vehicle prices remained unchanged monthly, while used vehicle prices decreased by -0.4% monthly.
🔸️Rents increased by 0.2% monthly, approximately 3% annually.
🔸️Clothing prices rose by 1.3% monthly, with an annual increase of 2.5%.
🔸️Healthcare services are among the items pushing inflation upward (monthly +0.6%, annual +4.1).
Price pressures continue in many items excluding energy. However, due to the Iran and Israel - America conflict and the closed Strait of Hurmuz, energy prices are expected to rise next month.
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