Turkey’s inflation at two-year high above 17 percent after lira slide
Turkish annual inflation climbed to 17.14 percent in April to its highest level in nearly two years, data showed on Monday, driven by a sagging lira and pricy commodity imports, pressuring the new central bank chief to keep policy tight, Reuters reported.
In March, inflation stood at 16.19 percent and remains well above a 5 percent official target. It was last this high in May 2019.
The lira currency has tumbled 13 percent since mid-March when President Recep Tayyip Erdoğan replaced a well-respected and hawkish central bank governor, driving up import costs for import-dependent Turkey.
The depreciation was reflected in soaring producer prices, which were up 35.17 percent year-over-year in April, from 31.20 percent in March, according to data from the Turkish Statistical Institute.
Month-on-month, consumer prices rose 1.68 percent, a bit less than a Reuters poll forecast of 1.80 percent.