Wall Street banks forecast more price pressures for Turkey on Monday, after the country announced that annual inflation rates climbed to a 20-year high of 61.14% in March.
JPMorgan forecasts that Turkey’s annual inflation will be in the range of 65-70% by the end of the year, when it could fall to 44%: “The TCMB (Central Bank of Turkey) has put all its emphasis on the system “It is unlikely that it will react to the CPI data as strongly as it does,” Jarkin Jebetzi told JPMorgan in a note.
Goldman Sachs forecasts that inflation will peak at around 67% in May-June and remain above 65% for most of 2022, although at the end of the year it will be at 45%: “We also see upside risks from “Commodity prices and a non-inflationary monetary policy stance,” Murat Onur of Goldman Sachs wrote in a note to customers. “Real interest rates in Turkey are now in a deeply negative region and are likely to further fuel inflation in the coming months,” he said.
The consumer price index jumped to 61.14% in March compared to the corresponding month of the previous year. In February, inflation had reached 54.44%. Transportation recorded the largest annual increase, followed by food and non-alcoholic beverages. Consumer prices on a monthly basis increased by 5.46% in March, while in February they had increased by 4.81%.
Petros Kranias
Source: Capital
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