Türkiye's Consumer Confidence Index in January hit the highest level since 2021, official data showed Monday, increasing again after a month with marked improvements in confidence for households and the economic situation.

The index rose 4.6% to 79.1 points this month, up from 75.6 in December, the Turkish Statistical Institute (TurkStat) highlighted.

The reading marked the highest level since September 2021, the data showed.

The biggest rise in confidence was seen in the current financial situation of households, which rose 7.4% in January from a month earlier to 61.6 points.

The confidence in the general economic situation expectation for the next 12 months rose 7% to 82.7 points, the data showed.

The financial situation expectation of households for the next 12 months index increased to 79.9 from 75.4.

Meanwhile, the index of assessment on spending money on durable goods over the next 12 months dropped to 92.2 from 92.6.

A confidence level below 100 reflects a pessimistic outlook, while a reading above 100 indicates optimism, according to the data from TurkStat.

Confidence plunged in 2020 due to the fallout from COVID-19 before a brief rebound. It took another dive in October 2021 ahead of a steep currency depreciation that triggered an inflationary spiral.

The index touched a record low of 63.4 in June before beginning to recover.