Inflationary pressures in Turkey are taking on increasingly serious proportions with inflation figures in December showing an increase of as much as 36.08 YoY. MoM the CPI increased by 13.58%.
Thus, inflation in Turkey shows an increase not seen for over 2 decades. This continues to put pressure on the monetary policy that is currently being driven in the country with stubbornly low interest rates, ruler Erdogan is trying to drive the country forward.
A look at what we can expect in the future is shown by the PPI numbers which rose 79.89% YoY in December. MoM means an increase of 19.08%.
Rising producer prices are always a bad sign as producers are likely to pass on the rising prices to consumers soon.
The Turkish lira has already lost 2% against the U.S. dollar this Monday.