Inflation in Turkey Falls to Nearly 50% Ahead of Elections

Official data released today, Monday, shows that consumer price inflation in Turkey dropped to 50.51% in March on a year-over-year basis. This decline, which came in slightly lower than expected, occurs ahead of the crucial presidential and parliamentary elections scheduled for May 14. The Turkish lira saw a slight decrease to 19.2020 lira per dollar, compared to 19.9600 before the announcement, experiencing a series of record lows in recent trading days. Consumer prices rose by 2.29% month-on-month in March, which is less than the anticipated 2.85% in a Reuters poll. Inflation in Turkey was exacerbated by a currency crisis experienced at the end of 2021, causing consumer prices to peak at a 24-year high above 85% in October, before inflation decreased, supported by a higher comparison base of 55.2% in February.