Inflation & Prices

Turkey Poised to Reach Worst of Inflation With Peak Close to 75%

  • Price growth set for deceleration after likely cresting in May
  • Fiscal discipline to play larger role in supporting slowdown

Vegetable vendors at the Friday Bazaar market in Istanbul, Turkey.

Photographer: Nicole Tung/Bloomberg
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Turkey hopes it’s close to turning the page on another crisis as inflation tops out.

A long stretch of annual price increases is a legacy of ultra-loose monetary policy, fiscal largess and chronic instability in the lira. Before a likely turnaround begins, inflation approached 75% in May, according to the median estimate of economists surveyed by Bloomberg, from just under 70% a month earlier.