Turkey’s annual inflation hits nearly 80%, peak could be near

Turkish Turkey’s annual inflation rose to a new 24-year high of 79.6% in July, data showed on Wednesday, as the lira’s continued weakness and global energy and commodity costs pushed prices lower. up, although the result was lower than expected.

Inflation began to rise as the lira fell after the central bank gradually cut its key interest rate by 500 basis points to 14%, in a easing cycle pursued by President Tayyip Erdogan.

On a monthly basis, consumer prices rose 2.37% in July, Turkey’s Statistical Institute said, below a Reuters poll forecast of 2.9%.

On an annual basis, the expectation was that inflation would reach 80.5%.

Jason Tuvey, senior emerging markets economist at Capital Economics, said the annual price spike could be nearing its peak with energy inflation falling sharply and food inflation seemingly near the top.

“Even if inflation is close to a peak, it will remain close to its current very high rates for several months,” Tuvey said in a note.

“Sudden and disorderly drops in the lira remain a key risk,” he said.

The biggest annual increase was registered by transport, of 119.11%, while the prices of food and non-alcoholic beverages rose 94.65%.

Source: CNN Brasil

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