Turkey’s CPI rose 47.8% year-on-year in July, up from 38.2% in June, and the median forecast was 46.8%.
Inflation ended its eight-month deceleration phase and embarked on a soaring trajectory.
Turkey’s central bank does not expect inflation to peak until closer to the middle of next year.
Price pressures have been building since the lira began to depreciate sharply after Turkish President Recep Tayyip Erdogan won the general election in May.
Another risk of higher inflation is that the government has also raised taxes on various necessities and fuel.
The IMF predicts that by 2023, Turkey’s price growth rate will rank fifth in the world.
Institutional economists said, “The government’s expansionary price and tax adjustments will be the main driver of the inflation surge. We expect the rapid depreciation of the lira after the general election in May to make a considerable contribution to inflation.”
