Turkish inflation hits two-decade high, inches toward 50%

Turkish inflation hits two-decade high, inches toward 50%

Turkey’s consumer prices rose 11.1% in January, bringing annual inflation to 48.7%, the highest rate in two decades, data released Thursday by the Turkish Statistical Institute (TUIK) show.

January’s inflation overshot both the forecast of Finance and Treasury Minister Nureddin Nebati, who had predicted a monthly rate of up to 8%, and the more realistic forecasts of the Central Bank. 

Turkish consumers are reeling from massive price hikes at the turn of the year, including on electricity, gas, fuel, transport and food, stoked mainly by the currency turmoil last year. Nebati’s recent forecast that inflation would peak in January before easing in the ensuing months appears off the mark as well. In an omen of further price increases, annual producer inflation was almost the double consumer inflation in January. According to many observers, consumer inflation is likely to hit an annual rate of up to 70% in the coming months.