Turkey’s annual inflation jumped to 69.97% in April, above forecasts and a two-decade high, data showed on Thursday, fueled by the Russia-Ukraine conflict and rising oil prices. energy and raw materials after the crash of the pound last year.
The currency slide was triggered by a 500 basis point interest rate easing cycle that began last September under pressure from President Tayyip Erdogan, triggering the sustained spike in consumer prices.
On a month-to-month basis, consumer prices rose 7.25%, the Turkish Statistical Institute said, against a Reuters poll forecast of 6%. Annually, consumer price inflation was forecast at 68%.
The surge in consumer prices was led by a 105.9% jump in the transportation sector, which includes energy prices, and an 89.1% jump in food and non-alcoholic beverage prices. , according to the data.
Month-over-month, food and non-alcoholic beverage prices rose the most with 13.38% and house prices rose 7.43%.
The government has said inflation will fall under its new economic program, which prioritizes low interest rates to boost production and exports in a bid to achieve a current account surplus.
However, economists estimate that inflation will remain high for the rest of 2022 due to the war in Ukraine.