Turkey's annual inflation rate soared to 36.1% last month, its highest level in 19 years under Recep Tayyip Erdogan, exposing the depths of a currency crisis engineered by the president's unconventional interest-rate cuts.
On Monday, data from the Turkish Statistical Institute showed that consumer prices took a rare step in December alone, rising 13.58%, affecting more deeply the earnings and savings of Turks shaken by the economic turmoil.
The year-over-year CPI beat the median forecast of a Reuters poll of 30.6% with the prices of basic goods such as transportation and food rising faster, requiring more household budgets through 2021.
The Turkish lira tumbled 44% of its value last year, as the central bank cut interest rates as part of a campaign by Erdogan to prioritize credit and exports over currency and price stability.
On Monday, the currency fell 5% and then rose 3%. It settled at 13.0790 against the dollar, up nearly 0.8% from Friday's close.
Analysts expect inflation to reach 50% by spring unless monetary policy is reversed. Goldman Sachs said it will remain above 40% for most of 2023
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