Central bank has hiked policy rate by 3,650 bps since June
Some economists see growing possibility of more tightening
Finance minister says inflation to fall in next 12 months

ISTANBUL, March 4 Reuters Turkey39;s annual inflation rate climbed to 67.07 in February, exceeding expectations and keeping up pressure for tight monetary policy amid strong rises in food, hotel and education prices, official data showed on Monday.

Shortly before the data, Finance Minister Mehmet Simsek told local broadcaster BloombergHT that inflation would remain high in the coming months due to base effects and the delayed impact of rate hikes, but would fall in the next 12 months.

The central bank has hiked interest rates by 3,650 basis points since June, but has now paused its tightening cycle saying that the current 45 policy rate is sufficient to bring inflation down.

Yet some economists see a growing prospect of more tightening sometime after nationwide local elections on March 31, given the price pressure and strong domestic demand.

Core price pressures continue to run hot and if this continues, the possibility of a restart to the central bank39;s tightening cycle will only increase in the coming months, said Capital Economics senior emerging markets economist Liam Peach.

Monthonmonth consumer price inflation CPI was 4.53, according to the Turkish Statistical Institute, down from 6.70 in January but well above a Reuters poll forecast of 3.7.

Annual inflation was expected to…