Kazakhstan's manufacturing remained under pressure in May, PMI data shows
23 hours ago
Stronger-than-expected June consumer price figures from Turkey provides “particularly striking” evidence that falls in the lira are feeding through into higher inflation more quickly and to a greater extent than had previously been the case, Jason Tuvey of Capital Economics said on July 4 in a research note headlined “Is Turkish inflation spiralling out of control?”.
More than anything, this seems to reflect unanchored inflation expectations – a situation that will only get worse if President Erdogan pursues looser monetary and fiscal policy, Tuvey added.
Turkey’s annual consumer price inflation jumped further from 12.15% in May to 15.39% in June, taking the rate up to the highest level recorded since 2003, the Turkish Statistical Institute (TUIK) announced on July 3.
“Unsurprisingly, the data have ignited concerns that inflation is getting out of control,” Tuvey also said.
Perhaps the key thing to look out for will be how the central bank reacts to inflation figures at its next policy meeting on July 24, according to Tuvey. Failure to hike interest rates would raise fresh concerns about the central bank’s independence and the direction of policymaking in Turkey.
As Capital Economics warned prior to the election, if President Erdogan pursues looser monetary and fiscal policy, this would only make the country’s inflation problem worse, Tuvey warned.
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Kazakhstan's manufacturing remained under pressure in May, PMI data shows
New orders decrease slightly. Record reductions in backlogs and stocks of finished goods.
Near-stabilisation of business conditions in Turkish manufacturing recorded by May PMI
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