Inflation in Turkey climbed to a new high in January. The consumer price index (CPI) and also the producer price index (PPI) are now out of control.
CPI rose 48.69% YoY in January which is above analysts’ expectations of 46.7%. In the previous month, inflation already rose by a high of 36.08%.
PPI rose 93.53% YoY in January compared to a 79.89% increase in December.
However, Turkish President Erdogan intends to stick to his low-interest-rate policy again this year. Critics criticize the policy and call on the Turkish central bank to take countermeasures before the lira collapses.
Erdogan, however, has other plans and wants to lower interest rates even further. Only recently he told his supporters in the province of Giresun, “You know of my battle with interest rates. We are lowering interest rates and we will lower them. Know that inflation will fall too then, it will fall more.”
However, the figures in January point in a different direction.