Turkish inflation soars

Inflation in Turkey hit 7.2 percent in May compared to the same month last year.

That was the highest rate in nearly a decade and much worse than economists had forecast.

It was 4.3 percent in April.

Core inflation – excluding volatile energy and food prices – was 4.7 percent.

Clothing prices jumped 11.7 percent in May and food prices rose 4.7 percent.

Prices rose 2.4 percent month-on-month.

Turkey’s central bank may now have to rethink its view that a rise in interest rates is not needed to control prices. Up till now it said that it can contain inflation and prevent the economy overheating by raising the reserve requirements for banks.

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