Turkiye's inflation surges to 70%, putting Erdogan’s seat in danger

Turkiye’s annual inflation jumped to a two-decade excessive of 69.97 per cent in April after final 12 months’ lira crash, Reuters reports.

According to the report, the surge in costs has badly strained households, just over 12 months before presidential and parliamentary elections to be held in 2023.

The hit to trade puts further pressure on Turkiye’s economy after a currency crisis in December.

Falling export income adds to the Turkish current account deficit, which is swelling following Russia’s invasion of Ukraine.

READ: Turkey facing its worst property crisis in history, Central Bank reveals

Due to war, Turkish trade with Belarus, Moldova and Romania has also cooled due to uncertainty, Reuters reports.

The decline of Turkiye’s currency fuels the power struggle in the country.

Last year, Turkish President Tayyip Erdogan came up with an unorthodox economic plan aimed to stabilise the lira currency by balancing the current account deficit and to guarantee 2023 elections. But, given the Ukraine conflict this year, Goldman Sachs revised its forecast for this year’s deficit from 1.5 per cent of GDP to 2.5 per cent.