Turkey Inflation Climbs to 73.5% in May on Food, Energy Costs

The video discusses Turkey's inflation rate, which has risen to 73.5% due to high energy and food prices, making the Turkish lira vulnerable. Despite expectations for a rate hike, the Central Bank is unlikely to change its policy due to President Erdogan's belief that higher interest rates fuel inflation. This belief contradicts conventional economic practices, where rate hikes are used to control inflation.

What is the Central Bank's official target for inflation?

What is the expected policy course of the central bank in response to high inflation?