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Turkey Consumer Prices (Feb.)

The stronger-than-expected rise in Turkey’s headline inflation rate, to 15.6% y/y in February, is likely to mark the peak and we expect inflation to fall steadily over the next six months or so. But, if the lira comes under renewed pressure in the coming weeks, the central bank may be forced to hike interest rates in order to reaffirm to investors its stronger commitment to tackling high inflation.

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