Jakarta –
Level Turkish annual inflation reached 73.5% in May 2022. That figure is the highest in 24 years or since 1998.
Collect ReutersSaturday (4/6/2022), inflation of that magnitude was triggered by the war in Ukraine, rising energy prices, and the fall of the Turkish currency, the lira.
Although the annual inflation in May 2022 has skyrocketed, the amount is actually below the forecast of 76.6%. According to the Turkish Statistical Institute (TUIK), the steepest annual price increase occurred in the transport sector by 108 percent, followed by food prices at 92%.
Meanwhile, on a monthly basis (mtm), consumer prices increased by 2.98%. The figure was lower than the Reuters poll forecast of 4.8%.
In addition, the lira weakened 0.25% to 16.5050 against the dollar touching its weakest level since December. The lira fell 44% in 2021 and another 20% this year. Economists see inflation in Turkey to remain high for the remainder of 2022 and end this year’s inflation at 63%.
“It is impossible for Turkey, which has gone beyond the rules of economic doctrine, to solve the main problem of high inflation with its current policies,” said economist Arda Tunca, columnist at PoliticsYol.
Economists also question the reliability of the TUIK figure regarding inflation. The poll shows Turks believe inflation is much higher than the official TUIK data.
“Building a TUIK structure that is independent from the government is as important as the independence of the central bank. The production of accurate and reliable data is the first and foremost prerequisite for implementing the right policies,” said economist Mahfi Egilmez.
(fdl / fdl)
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