Türkiye's inflation rate cooled at a faster pace than analysts anticipated both on an annual and a monthly basis in March, official figures showed on Friday.
The annual inflation dipped to 30.9%, compared to 31.5 in February, according to the Turkish Statistical Institute (TurkStat).
On a monthly basis, consumer prices rose 1.9%, compared with 2.96% in February.
The data showed transport and food prices were the biggest monthly drivers of inflation in March, in addition to existing price pressure and turmoil due to the Iran war.
Monthly inflation was forecast to be 2.32%, with the annual rate seen at 31.4%, driven by a rise in fuel prices and weather-related pressures on food inflation.
Central Bank of the Republic of Türkiye (CBRT) raised its year‑end inflation forecast range by two percentage points to 15%-21%, while keeping its interim 16% target unchanged in February.
CBRT Governor Faith Karahan said earlier this week the bank would maintain the needed tight policy to continue disinflation, which had started slowing even before the war began more than a month ago.
The bank has halted its easing cycle with the main rate at 37%, lifted its overnight rate by about 300 basis points to near 40%, and undertaken heavy sales and swaps of foreign exchange and gold reserves to support the Turkish lira currency.
Karahan defended the moves as a "natural choice" amid such market turmoil.
The data on Friday also showed the domestic producer index rose 2.30% month-over-month in March for an annual increase of 28.08%.
