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Goldman sees Turkey inflation of near 80% before relief comes

Published 06/17/2022, 09:42 AM
Updated 06/17/2022, 09:46 AM
© Reuters. FILE PHOTO: People stroll at Mahmutpasa street, a middle-class shopping area, in Istanbul, Turkey May 6, 2022. REUTERS/Murad Sezer
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ISTANBUL (Reuters) - Goldman Sachs (NYSE:GS) said on Friday it expects annual inflation in Turkey to reach almost 80% before easing to 60% by the end of 2022, thanks to so-called favourable base effects.

© Reuters. FILE PHOTO: People stroll at Mahmutpasa street, a middle-class shopping area, in Istanbul, Turkey May 6, 2022. REUTERS/Murad Sezer

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

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

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