Turkey’s inflation hits 70% climbing to a new 20-year high

Inflation expected to recede as of May
Turkey’s inflation hits 70% climbing to a new 20-year high
People wearing face masks do their grocery shopping in Istanbul, Turkey.

Turkey’s annual inflation rate soared to 69.97 percent in April, exceeding predictions and reaching the highest level of inflation in two decades, according to figures released on Thursday.

The Russian-Ukrainian conflict, as well as the spike in commodity costs following the collapse of the Turkish currency late last year, are driving up Turkish inflation.

Furthermore, interest rate-cutting measures contributed to the country’s deteriorating situation.

Last week, the Turkish Central Bank predicted that inflation would reach around 70 percent by June. Meanwhile, some estimates suggested that inflation could reach as high as 75 percent.

According to Turkey’s Central Bank, inflation will begin to recede as of May. 

In a similar development, the Turkish Statistical Institute (TURKSTAT) reported that consumer prices increased 7.25 percent month-on-month, compared to a Reuters poll’s prediction of a 6 percent increase.

Consumer price inflation was expected to reach 68 percent y/y.

In April, the domestic producer price index climbed 7.67 percent month-on-month for an annual rise of 121.82 percent. 

Last month, Fitch Ratings lowered Turkey’s debt from “BB-” to “B+”, with negative prospects, citing high inflation rates and a lack of confidence in the ability of decision-makers to reverse course.

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