TL Is Positive Despite Inflation

Despite the inflation above expectations, the Turkish Lira continues to increase in value.

TL is positive despite inflation. Despite the inflation in January, which was higher than expected, the Turkish Lira continued its positive course against the US dollar. The monthly inflation announced at 1.68 percent in January which was above expectations. Despite the inflation that continued its upward trend, the Turkish Lira continued its recent gains against the US dollar. Following the said data, the USD/TL exchange rate saw below the 7.16 level. Euro/TL exchange rate tested below 8.62 level. While the benchmark bond interest rate was announced as 14.77 percent, the yield of the 10-year bond increased by 4 basis points to 13.06 percent. The Bloomberg Dollar Index continued its steady course at 1,132. The risk premium was realized at 301. The risk premium spreads between Turkey and South Africa decreased.   Inflation Was Above Expectations in January Inflation increased at an annual rate of 14.97 percent in January and was again above expectations after November and December. The increase in consumer prices in January was recorded as 1.68 percent. It showed that the rising momentum in producer prices recorded in January continued. Thus, the producer price index rose 26.16 percent annually in January. When analyzed monthly, the rate of increase was 2.66 percent.