Goldman sees Turkey inflation of near 80 per cent before relief comes

Goldman Sachs said on Friday it expects annual inflation in Turkey to reach almost 80 per cent before easing to 60 per cent by the end of 2022, thanks to so-called favourable base effects.

Inflation in Turkey hit 73.5 per cent in May, stoked by a currency crisis last year and soaring energy costs due to Russia’s invasion of Ukraine.

The lira lost 44 per cent against the dollar in 2021 in addition to another 24 per cent so far this year. It remains under pressure as real yields in Turkey are deeply negative amid a global tightening cycle.