Turkey’s annual inflation is expected to rise to 17.25% in May, increasing for an eighth straight month contrary to central bank expectations, according to a Reuters poll on Monday that predicted it would drop to just below 15% by year-end.
A recent lira depreciation, sparked by President Recep Tayyip Erdogan’s sacking of a hawkish central bank governor, has raised both inflation and expectations for more.
The consumer price index (CPI) rose 17.14% in April. The currency’s decline of about 15% since mid-March has raised overall prices for import-dependent Turkey and pushed producer price inflation above 35% in April.
The median estimate of 15 economists in the Reuters poll for annual inflation in May was 17.25%, with forecasts ranging between 16.94% and 17.58%. [Reuters]