"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2021-12-10T14:06:50Z"
data-video-section="world"
data-canonical-url="https://www.cnn.com/videos/world/2021/12/10/turkey-lira-jomana-karadsheh-pkg-intl.cnn"
data-branding-key=""
data-video-slug="turkey lira jomana karadsheh pkg intl"
data-first-publish-slug="turkey lira jomana karadsheh pkg intl"
data-video-tags="banking, finance and investments,business, economy and trade,continents and regions,currencies,economic conditions,economic indicators,economy and economic indicators,elections and campaigns,exports and imports,government and public administration,inflation,interest rates,international trade,jomana karadsheh,middle east,middle east and north africa,misc people,money, banknotes and coins,politics,tourism,trade and development,travel and tourism,turkey"
data-details="">
Video Ad Feedback
Getting poorer by the day: Turkey's lira in freefall
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2021-12-10T14:06:50Z"
data-video-section="world"
data-canonical-url="https://www.cnn.com/videos/world/2021/12/10/turkey-lira-jomana-karadsheh-pkg-intl.cnn"
data-branding-key=""
data-video-slug="turkey lira jomana karadsheh pkg intl"
data-first-publish-slug="turkey lira jomana karadsheh pkg intl"
data-video-tags="banking, finance and investments,business, economy and trade,continents and regions,currencies,economic conditions,economic indicators,economy and economic indicators,elections and campaigns,exports and imports,government and public administration,inflation,interest rates,international trade,jomana karadsheh,middle east,middle east and north africa,misc people,money, banknotes and coins,politics,tourism,trade and development,travel and tourism,turkey"
data-details="">
Video Ad Feedback
Getting poorer by the day: Turkey's lira in freefall
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2024-03-31T00:30:19Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/business/2024/03/30/cocoa-chocolate-pricing-surge-easter-rodriguez-nr-vpx.cnn"
data-branding-key=""
data-video-slug="cocoa chocolate pricing surge easter rodriguez nr vpx"
data-first-publish-slug="cocoa chocolate pricing surge easter rodriguez nr vpx"
data-video-tags="agricultural commodities,agriculture,agriculture, forestry, and commercial fishing,banking, finance and investments,business and industry sectors,business, economy and trade,commodity markets,consumer products,domestic alerts,domestic-business,easter,financial markets and investing,food and drink,food products,holidays and observances,iab-agriculture,iab-business,iab-business and finance,iab-business banking & finance,iab-commodities,iab-desserts and baking,iab-economy,iab-financial industry,iab-food & drink,iab-industries,international alerts,international-business,kinds of foods and beverages,price increases,sweets and desserts"
data-details="">
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2024-03-22T12:43:25Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/business/2024/03/22/trump-truth-social-prepares-to-go-public-egan-cnntm-vpx.cnn"
data-branding-key=""
data-video-slug="trump truth social prepares to go public egan cnntm vpx"
data-first-publish-slug="trump truth social prepares to go public egan cnntm vpx"
data-video-tags="companies,domestic alerts,domestic-business,domestic-us politics,donald trump,iab-computing,iab-internet,iab-politics,iab-social networking,iab-technology & computing,international alerts,international-business,international-us politics,political figures - us,social media,society,trump media & technology group"
data-details="">
Video Ad Feedback
Donald Trump may be on the verge of a massive financial win
"
data-check-event-based-preview=""
data-is-vertical-video-embed="false"
data-network-id=""
data-publish-date="2024-03-21T05:30:53Z"
data-video-section="business"
data-canonical-url="https://www.cnn.com/videos/business/2024/03/21/china-nongfu-spring-boycott-stewart-lkl-hnk-vpx.cnn"
data-branding-key=""
data-video-slug="china nongfu spring boycott stewart lkl hnk vpx"
data-first-publish-slug="china nongfu spring boycott stewart lkl hnk vpx"
data-video-tags="beverages,bottled water,boycotts,business and industry sectors,business, economy and trade,consumer products,food and drink,iab-food & drink,iab-non-alcoholic beverages,kinds of foods and beverages"
data-details="">
Video Ad Feedback
See why some Chinese people are boycotting a popular brand
Consumer prices jumped 11.1% from the previous month, the Turkish Statistical Institute (TUIK) said, eating deeply into Turks’ earnings. Both measures were higher than expected in a Reuters poll, which forecast 9.8% monthly and 46.7% annually.
The lira shed 44% of its value last year as the central bank slashed interest rates by 500 basis points since September to 14%, under Erdogan’s drive to prioritize credit and exports despite the double-digit price rises.
Partly in response to the currency turmoil, the government raised a series of administered prices this year including for gas, electricity, road tolls and bus fares, adding to inflationary pressure. The monthly minimum wage was hiked 50%.
Transport-related prices soared 68.9% year-on-year in January, while food and drinks prices jumped 55.6%, driving overall inflation to its highest level in Erdogan’s nearly two decades in power.
The lira edged down 0.5% to 13.56 against the dollar at 0748 GMT (0248 ET). It has stabilized after wild swings — from 18.4 to 10.25 — in December due in part to state market interventions and a deposit-protection scheme.
“We have a policy rate of 14% and inflation at 48%… and a government that covers for the FX gap. It’s a bad cocktail for the long-term,” said Ipek Ozkardeskaya, a senior analyst at Swissquote.
The lira “can only hit back as there is a serious deviation between what should be done and what is being done. But for now, I am stunned to see the lira as unresponsive to the news,” she said.
In a reflection of the recent foreign-exchange volatility, the producer price index soared 10.45% month-on-month in January for an annual rise of 93.53%, the data showed.
Several analysts expect year-on-year inflation to surpass 50% this quarter and to remain above 40% for much of the year before easing toward the end.
In an interview with Japan’s Nikkei, Finance Minister Nureddin Nebati predicted inflation will remain below 50% and peak in April.
On Saturday, Erdogan replaced the head of TUIK. Opposition parties and some economists have cast some doubt on the agency’s figures, claims TUIK has dismissed. Polls show Turks believe inflation is higher than official data suggests.
