The lira crisis exacerbated the level of inflation in Türkiye
A Reuters poll conducted on Monday showed that the monthly inflation rate in Turkey is expected to reach 4.84 percent in June, due in part to the sharp decline in the value of the lira after the elections that took place last month, but the annual reading is expected to decline slightly to 39.47 percent.
According to the average estimates of 11 economists, inflation is expected to rise on a monthly basis in June by 4.84 percent, and expectations ranged between 2.50 percent and 5.50 percent. This rise is partly due to the lira’s 23.3 percent decline since President Recep Tayyip Erdogan’s re-election on May 28.
Economists said that among the other factors that contributed to the rise in inflation on a monthly basis was the general increase in prices in various sectors, which included the rise in the prices of gasoline, precious metals, services, cars and tobacco.
The year-on-year inflation was expected to be 39.47 percent, down slightly from 39.59 percent in May, and the rate this month was expected to be between 36.30 percent and 40.30 percent.
Turkish economic authorities have taken steps to return to traditional policies since Erdogan’s re-election last month, including the central bank raising interest rates by 650 basis points to 15 percent on Thursday.
However, this measure fell short of market expectations, as the median estimate in a Reuters poll was for interest rates to reach 21 percent.
The Turkish Statistical Institute is due to release inflation data for June at 0700 GMT on July 5th.
Reception: The Turkish Central Bank is currently focusing on reducing inflation
2023-06-26 16:29:07
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