UN issues inflation cautionary for Turkey

(MENAFN) The World Economic Situation and Prospects report, released on Wednesday, states that the United Nation anticipates Turkish inflation to decline to an average of 42.4 percent by the end of the year, a figure that is far higher than the nation’s own official estimates.

The findings of the United Nation research raise questions about the country's intention to fight inflation by lowering interest rates. In an effort to promote economic growth, increase exports and investment, and combat unemployment, Türkiye started lowering interest rates in 2021.

The national currency, nevertheless, had a crisis and lost about 30 percent of its value last year as a result of the program. Turkish price growth reached an all-time high of 85.5 percent in October last year before somewhat slowing to 64.3 percent in December.

Economists expect a decline in inflation to be more moderate than Ankara’s official forecast, which sees it slowing to 24.9 percent the current year and dropping further to 13.8 percent in 2024. Housing (79.83 percent), food and non-alcoholic drinks (77.87 percent), and transportation (54.45 percent) had the biggest price rises in the last year.

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