Turkey’s headline inflation in May probably dipped below 40% for the first time since late 2021, helped by the state statistics office’s decision to exclude household-gas consumption in its calculations last month.
(Bloomberg) — Turkey’s headline inflation in May probably dipped below 40% for the first time since late 2021, helped by the state statistics office’s decision to exclude household-gas consumption in its calculations last month.
TurkStat said it would record gas prices as zero in May, following President Recep Tayyip Erdogan’s giveaway of the power source to households for the month before May’s elections. A Bloomberg survey expects annual inflation to be 39.2%.
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The Turkish central bank has kept its benchmark interest rate unusually low over the past two years, heeding Erdogan’s wishes for low borrowing costs to pump up the economy. Much of the cooling in price gains earlier this year has been attributed to statistical base effects.
–With assistance from Joel Rinneby.
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