Turkish lira remains volatile after surprise dip in inflation data
Turkey’s annual inflation unexpectedly dropped to 16.59% in May, according to data published Thursday. The news did not steady the nation’s currency, which slid on market concerns over an early interest rate cut.
ISTANBUL — Bucking a seven-month trend of steady increases, Turkey’s annual inflation rate fell slightly in May, catching forecasters by surprise after many projected another rise for the month.
According to data published Thursday, the nation’s year-on-year inflation dipped to 16.59%, down from 17.14% in April. The unexpected news raised concerns policymakers might bow to pressure from Turkish President Recep Tayyip Erdogan and cut key interest rates early, which translated into the lira sliding more than 1% on the day, trading at 8.71 per US dollar at 4 p.m. Istanbul time.
