Featured image of post Turkey’s inflation soars to 73%, a 23-year high, as food and energy costs skyrocket

Turkey’s inflation soars to 73%, a 23-year high, as food and energy costs skyrocket

Economic analysts expect Turkey's inflation will only get worse as the country grapples with President Erdogan's unorthodox strategy on monetary policy.

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Economic analysts expect Turkey’s inflation will only get worse as the country grapples with President Erdogan’s unorthodox strategy on monetary policy.

Highlights

  • Turkey’s inflation for the month of May rose by an eye-watering 73.5% year on year.
  • Food prices in the country of 84 million rose 91.6% in May.
  • President Erdogan has for years refused to meaningfully raise rates to cool the resulting inflation.
  • He instructed the country’s central bank to repeatedly slash borrowing rates last year even as inflation continued to rise.
  • By the spring of 2021, Turkey had seen four different central bank chiefs fired; by that time, the central bank had seen a total of four in two years.
  • Inflation will only get worse as the country grapples with President Erdogan’s strategy on monetary policy.