Turkey’s economic troubles have worsened, evidence suggests. This became clear after May inflation soared to nearly 70%.
Rising inflation in Turkey has led to a spike in food and energy prices, making life tougher for many, especially those living below the poverty line.
Food prices have risen 91.6% year-over-year, according to the country’s statistics department.
This figure is even more worrisome when considering the implications of Russia’s invasion of Ukraine on the global supply chain.
Turkey has grown substantially in recent years. Turkey’s economic troubles are linked to President Tayyip Erdogan’s policy of raising interest rates to temper inflation.
Multiple analysts believe inflation will rise.
MUFG Bank’s director of emerging markets research for Europe, the Middle East, and Africa predicts 80% inflation by the third quarter.
#Turkey – #CPI rises further to 73.5% y/y in May-22 ➡️ the laser focus on heterodox measures over conventional monetary policy will unlikely solve the #inflation challenge and we anticipate levels breaching 80% y/y in Q3-22 pic.twitter.com/K8CJPOT1km
— Ehsan Khoman (@EhsanKhoman) June 3, 2022
