ANKARA \u2013 April 4 (ONLINE) Turkey’s annual consumer inflation leapt to a 20-year high of 61.14% in March, data showed on Monday, fuelled by rising energy and commodity prices following the Russia-Ukraine conflict which is compounding the impact of a lira crash late last year.<\/p>\n
Inflation has been surging since last autumn, when the lira slumped after the central bank (CBRT) launched a 500 basis-point easing cycle long sought by President Tayyip Erdogan.<\/p>\n
On a month-on-month basis consumer prices rose 5.46%, the Turkish Statistical Institute said, compared with a Reuters poll forecast of 5.7%. Annually, consumer price inflation was forecast to be 61.5%.<\/p>\n
“CBRT policies are just not working in countering inflation,” said Tim Ash at BlueBay Asset Management. “Indeed, I think the overwhelming consensus is that the unorthodox policy settings of the CBRT are a major cause of inflation.<\/p>\n
“The war in Ukraine is just making things that much worse,” Ash added, nothing the bank had not hit its annual inflation target of 5% since 2011.
\nThe inflation data had little impact on the lira, which was 0.1% weaker against the dollar at 14.71. It tumbled 44% in 2021 and is another 10% weaker so far this year.<\/p>\n
Figures also showed the producer price index climbed 9.19% month-on-month in March for an annual rise of 114.97%.<\/p>\n
The monthly rise in consumer price inflation was driven by transportation, which includes petrol prices, and education-related items such as text books and school fees, which rose 13.29% and 6.55% respectively. Rising energy prices in particular have drawn public protests in recent months.<\/p>\n
Annually, the transportation group led the rise, up 99.12%, followed by food and non-alcoholic drink prices, at 70.33%, and furniture prices at 69.26%.<\/p>\n
Economists marked up inflation expectations at a global level following the Russian invasion of Ukraine, with energy prices hitting multi-year highs as the West sanctioned Moscow. Turkey imports almost all of its energy needs.<\/p>\n
Economists see Turkish price rises remaining high for the rest of the year, with the median estimate for year-end inflation at 52.2%, up from 38% in a Reuters poll conducted a month ago.<\/p>\n","protected":false},"excerpt":{"rendered":"
ANKARA \u2013 April 4 (ONLINE) Turkey’s annual consumer inflation leapt to a 20-year high of 61.14% in March, data showed on Monday, fuelled by rising energy and commodity prices following the Russia-Ukraine conflict which is compounding the impact of a lira crash late last year. […]<\/p>\n
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