Turkish inflation seen accelerating to more than 17 percent - polls

Turkey’s consumer price inflation rate is expected to climb to more than 17 percent in April, according to surveys by Bloomberg, Reuters and the state-run Anadolu news agency.

Inflation probably accelerated for a seventh straight month to 17.3 percent due to the weak lira and increasing commodity prices, Bloomberg reported on Monday citing a median estimate of 16 analysts. All predicted an increase from the 16.2 percent reported for March.

Turkey’s inflation rate is rising after the lira slid by 28 percent against the dollar since the start of last year, pushing up the price of imported goods and materials. The government has preferred to stimulate economic growth rather than tackle price increases, encouraging banks to back a borrowing boom led by state-run lenders during the COVID-19 pandemic.

The lira traded down 0.3 percent at 8.29 per dollar at 8:51 a.m. local time on Monday.

Inflation will probably nudge up to 17.3 percent, Reuters said last week, citing the median estimate in a survey of 15 economists. Estimates ranged from 16.7 percent to 17.58 percent, it said. Inflation for April was seen at 17.27 percent, Anadolu said in its poll of 20 economists published on Friday.

The Turkish Statistical Institute is due to publish April inflation data at 10 a.m. on Monday.