Would you like to receive notifications on latest updates of the following headlines?

Turkey's Inflation Hits 75% Peak Before Relief

POSTED ON June 4, 2024 •   Business      BY Abiodun Saheed Omodara •   VIEWS 151
A view of produce for sale at a store in Istanbul, Türkiye, May 29, 2023. l Credit: REUTERS/Hannah McKay l Source: aawsat.com

Turkey's annual consumer price inflation reached 75.45%, slightly exceeding expectations In May, according to official data released on Monday. 

This is anticipated to be the highest point before a series of interest rate hikes and relative stability of the lira bring some relief.

The increase in the consumer price index was primarily driven by significant rises in education, housing, and restaurant prices last month, as indicated by data from the Turkish Statistical Institute.

The data also showed that monthly inflation is expected to decrease after May, which stood at 3.37% compared to 3.18% in April. In April, the annual inflation rate was reported at 69.80%.

Finance Minister Mehmet Simsek expressed optimism, stating that "the worst is over" and relief will begin this month.

He also mentioned that "The transition period in the fight against inflation is completed, we are entering the disinflation process."

According to a Reuters poll, annual inflation was projected to peak at 74.8% in May, reaching its highest level since November 2022, before dropping to 42.6% by the end of 2024. Forecasts for month-on-month price increases ranged between 2.7% and 3.3%.

The central bank has increased its policy rate by 4,150 basis points since June last year and has pledged to tighten further if there is "a significant and persistent deterioration" in the outlook.

The last rate hike was in March, by 500 basis points to 50%, citing a deteriorating inflation outlook, and has maintained stability since then.

This tightening represents a significant shift from years of monetary stimulus advocated by President Tayyip Erdogan to stimulate growth, which led to a surge in inflation and triggered a long-term cost-of-living crisis for the people of Turkey.

As a result, the lira, which remained steady on Monday, has depreciated to 32.25 against the dollar from 5.7 five years ago.

Although it has declined by more than 8% this year, it has remained relatively stable since March, contributing to the expected relief in inflation.

"We're confident that inflation has now reached a peak but, with today's release containing a few unpleasant surprises, the pace of disinflation in the second half of the year is looking a bit uncertain," 

RECOMMENDED FOR YOU
IMF pledges support for Tinubu's reforms
BY Abiodun Saheed Omodara November 21, 2024 0

The President of the International Monetary Fund (IMF), Kristalina Georgieva has expressed strong ba...

RECOMMENDED FOR YOU
Amazon Shares Show Resilience Amid Market Fluctuations
BY Suleiman Kelvin Jimoh November 21, 2024 0

Amazon.com Inc (AMZN) has demonstrated a remarkable rebound in the stock market, showing a year-to-d...

RECOMMENDED FOR YOU
Gombe gov presents N320bn 2025 budget to assembly
BY Abiodun Saheed Omodara November 20, 2024 0

Gombe State Governor, Muhammadu Yahaya, presented a proposed budget of N320.11 billion for the 2025...

RECOMMENDED FOR YOU
NNPCL: Coalition group vows protest, says 1.6bn litres PMS will cripple economy
BY Benedicta Bassey November 20, 2024 0

NIGERIA—Following the decision by the Nigeria National Petroleum Company Limited (NNPCL), to i...

RECOMMENDED FOR YOU
FG reviews housing budget to N500bn for 2025
BY Benedicta Bassey November 19, 2024 0

NIGERIA —The Federal Government on Tuesday said it is reviewing it's annual housing budget to...

RECOMMENDED FOR YOU
Naira appreciates, hit N1,735/$ in parallel market
BY Benedicta Bassey November 19, 2024 0

The Naira appreciated to N1,735 per dollar in the parallel market from N1,740 per dollar last weeken...

RECOMMENDED FOR YOU
Tinubu, India PM sign pacts to foster collaboration in defence, economy
BY Benedicta Bassey November 18, 2024 0

NIGERIA — Nigeria and India have entered into partnership to foster collaboration in  def...

RECOMMENDED FOR YOU
UK regular pay growth slows, offering Bank of England hope for easing inflation pressures
BY ROCKETPARROT.com staff November 12, 2024 0

LONDON, Nov. 12 – British wage growth excluding bonuses hit a two-year low in the third quarte...

OUR CHANNELS:

OTHER ARTICLES ::

25th November, 2024
Tinubu eyes livestock sector reform, investment to curb farmer-herder clashes
BY Abiodun Saheed Omodara November 25, 2024 0

President Bola Tinubu has reaffirmed his administration’s commitment to resolving the farmer-h...


Katsina Govt. applauds  NAF  strike against bandits, vows to sustain regional stability
BY Abiodun Saheed Omodara November 25, 2024 0

KATSINA – The Katsina State Government has commended the Nigerian Air Force (NAF) for successf...


Breaking : Supreme court voids National Lottery Act
BY Abiodun Saheed Omodara November 25, 2024 0

The Supreme Court, on Friday, nullified the National Lottery Act 2005 enacted by the National Assemb...


ECB's renews integration call as trade war looms
BY Abiodun Saheed Omodara November 25, 2024 0

European Central Bank, President Christine Lagarde renewed her call for economic integration across...


China expands Visa-free entry to more countries to boost economy
BY Abiodun Saheed Omodara November 25, 2024 0

On Friday, China announced that it would expand visa-free entry to citizens of nine more countries a...


FAO aims key outcomes at COP16 Saudi Arabia
BY Abiodun Saheed Omodara November 25, 2024 0

The assistant Director-General of the Food and Agriculture Organization (FAO), Dr. Abdul Hakim Elwae...


Illegal detention: Bizman slams N50m suit on NDLEA
BY Benedicta Bassey November 25, 2024 0

NIGERIA — A businessman, Damilare Samuel, has slammed the National Drug Law Enforcement Agency...


Appeal Court invalidates verdict against Rivers LG election
BY Benedicta Bassey November 25, 2024 0

ABUJA, Nigeria —The Court of Appeal, sitting in Abuja has nullified the judgement that prevent...


Man in Police net for defiling, impregnating 15-yr-old daughter
BY Benedicta Bassey November 25, 2024 0

CALABAR, Nigeria —A 48-year-old man, Mallam Adamu Umaru, was paraded by the Zone 6 Police Comm...


Trump picks Pam Bondi as Attorney General following Gaetz withdrawal
BY Benedicta Bassey November 25, 2024 0

WASHINGTON, United States  — US President-elect Donald Trump has nominated Pam Bondi, a v...


Menu