Turkey’s inflation slows further as elections near

Turkey’s inflation rate slowed for a fourth successive month in February, official data showed Friday, ahead of May elections in which President Recep Tayyip Erdogan’s economic record will be under scrutiny.

Consumer prices grew at an annualised rate of 55.2 percent in February compared to 57.7 percent in January and 64.3 percent in December, according to the state statistics agency.

It peaked at 85.5 percent in October, the highest rate during Erdogan’s two decades of rule.

The inflation report comes as the government prepares to pour billions of dollars into rebuilding huge swathes of Turkey following the massive earthquake that struck on February 6.

Scores of cities were devastated and more than 50,000 people were killed in Turkey and neighbouring Syria.

The massive spending could turbo-charge consumer spending and industrial production, two key indicators of economic growth, but also spur a rebound in inflationary pressures.

The earthquake and aftershocks caused an estimated $34 billion in damages across Turkey, the World Bank said on Monday.

The estimate does not include the eventual costs of reconstruction that are “potentially twice as large,” the Washington-based institution said.