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Exceeding expectations, Turkish inflation rate records historical levels

Turkish inflation rate

Ankara, (Business News Report)|| Turkish inflation rate has risen to a historical level, after it jumped by 70% during the month of April, on an annual basis.

The Turkish inflation rate also exceeded expectations, to constitute the highest level of inflation in two decades.

Inflation came with the support of the Russian-Ukrainian conflict and the rise in commodity prices after the collapse of the lira late last year.

The Turkish Statistical Institute said consumer prices rose 7.25% on a monthly basis, compared with expectations in a Reuters poll for a rise of about 6 percent.

The rate of consumer price inflation was expected to reach 68% on an annual basis.

The domestic producer price index rose 7.67% on a monthly basis in April, recording an annual increase of 121.82%.

Separately, the successive increase in corporate profits in Turkey became the agenda in Germany, and German newspapers started to circulate the news about it.

Earlier, the Central Bank, which updated its inflation forecast for the end of 2022, raised its forecast from 23.2% to 42.8%.

The German newspaper Handelsblatt drew attention to the profitability rate of companies in Turkey, despite the inflation rate.

It was noted that the risk of recession persisted in the United States and Europe, and the German economy grew by only 0.2 percent in the first quarter.

In such a period, it was said that while inflation increased in Turkey, corporate profits increased simultaneously, so that the next question is frequently asked, “How does this happen?”

Ford Otosan achieved a net profit of 180 million euros (2.8 billion liras) in the first quarter of last year. He stated that this was 54% higher than the same period last year.

It is noteworthy that Akbank achieved a net profit of about 8 billion liras (515 million euros) between January and March, an increase of 297% compared to the same quarter of the previous year and an increase of 68% compared to the previous quarter.

It was also confirmed that Tat Gıda’s profits tripled, Aselsan’s net profit increased by 37%, Otokar’s by 87%, Garanti Bank by 206% and Kardemir’s profits by 121%.

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