Turkish economy in the rough, inflation hits hard
There was a sharp increase in the USD/TL exchange rate. Inflation is getting worse and the view that the descent can’t be stopped is gaining traction.
Turkish Statistics Institute (TUIK) announced the inflation rates for the month of June. The USD exchange rate, around 4.62 before the announcement, shot up to 4.6884 after. Inflation for June increased 2.61% while yearly inflation rose to 15.39%.
The Consumer Price Index rose 2.61% for June and 15.39% for the year, while the annual inflation was the highest the 2003 based CPI ever saw. Monthly increase was also the highest since October 2011. The CPI is now at a 15 year high.
IT WILL GET WORSE
Economists say inflation has worsened due to the weak Lira, rising commodity prices and the higher than expected hike in food prices, and point out that an acceleration in the rate of inflation is possible for the coming period.
Expected price hikes for oil, natural gas, tobacco and various other commodities support the estimation that inflation will continue to get worse.
