Turkey’s inflation rate likely accelerated to a near 20-year high in January
Propelled by rising energy prices and President Recep Tayyip Erdogan’s push for lower borrowing costs. ABC reports
Data pinpoints the consumer price inflation surged for an eighth straight month to reach an annual 48%, according to the median estimate in a Bloomberg survey of 19 economists. That compares to 36.1% in December.
*chart by John Hopkins Institute
Turkey’s central bank has slashed its benchmark interest rate by 500 basis points since September in a series of moves encouraged by Erdogan, who harshly criticized elevated borrowing costs, as a challenge for businesses and a burden on economic growth.
The cuts have pushed the official rate to negative 22% when adjusted for annual inflation (the lowest yield across emerging markets) sending lira into a tailspin that’s accelerated consumer price rises.