Surprisingly low Turkey's inflation: The 2021 Turkish lira devaluation crisis inflated prices very quickly causing a very high base for comparison for this year
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Last week one of the most shocking news was the shocking decline of Turkey's inflation. The print amounted to 55.18%, so we've wondered what could the reason. We asked David Kindley from Orbex what would he attribute the surprising decrease in Turkey’s inflation to?
In short, I believe Turkey has a long way to go in terms of curbing inflation
David Kindley (Orbex): Turkey’s inflation decelerated to its slowest level in the last year according to the latest CPI report, but I don’t think the steep decline is the result of strict monetary policy. On the contrary, President Erdogan continues to refuse to increase key rates by a meaningful margin, as it’s against his religious beliefs. The steep decline can therefore more likely be attributed to a statistical discrepancy, as the 2021 Turkish lira devaluation crisis inflated prices very quickly causing a very high base for comparison for this year. In short, I believe Turkey has a long way to go in terms of curbing inflation.
