Consumer price inflation in Turkey could accelerate to more than 200%, local research agency ENAG said in a report this week.
Official Turkish economic data, which showed that consumer price inflation rose to 70% in April, is inaccurate, said ENAG, which is made up of Turkish academics, economists and economic analysts based in Turkey and abroad. He also said that the government may have announced that the economy was growing last year, but in fact it was shrinking.
Inflation in Turkey has soared to two decades after the pound fell against the dollar in 2021. Turkish and foreign investors sold the currency en masse after the central bank, acting on the orders of President Recep Tayyip Erdogan, cut interest rates by 14%. 19% between September and December. Since then, it has kept interest rates stable.
The Turkish Statistical Service is sending false messages to the economy, while the loss of foreign exchange reserves and the central bank’s credibility weakened the pound and sent inflation higher, ENAGgroup reported.
The agency estimated annual inflation at 157% for April in a report that coincided with the release of official data in early May.
ENAGgroup said inflation-linked deposit accounts introduced by the government in December to contain the pound were “fake financial products” that did not have a positive effect on inflation, the exchange rate or the balance of payments.
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