The central bank of Turkey expects inflation to rise to the end of this year. The prediction and expectation of Governor Hafize Gaye Erkan are not good for Turkey economy.
Turkey’s central bank with monthly and annual inflation rates announced that inflation has moved up the latter last month and it has gone up to 58.94%.
The central bank of Turkey says that it was necessary to increase interest rates because of the surging oil prices.
Turkish economy in last few years has weakened because of the accelerating costs and as we know last year in November inflation hit record high of 85.5%. Now it started to climb again and the prediction are not good. Economy and its currency lira is in trouble by looking at how many liras you needed for one dollar.
1 US dollar – 8 Turkish lira in 2021,
1 US dollar – 19 Turkish lira in 2022,
1 US dollar – 27 Turkish lira in 2023.
In many cases when currencies fail in value is because of buying most goods from abroad. In this, case the one who affect the most are fuel, materials and technology. When currencies get weaker, that means higher prices.
It is hard to predict what is going too happened to the end of this year but we hope the inflation goes down.