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Turkey’s inflation at two-year high above 17 percent after lira slide

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Turkish annual inflation climbed to 17.14 percent in April to its highest level in nearly two years, data showed on Monday, driven by a sagging lira and pricy commodity imports, pressuring the new central bank chief to keep policy tight, Reuters reported.

In March, inflation stood at 16.19 percent and remains well above a 5 percent official target. It was last this high in May 2019.

The lira currency has tumbled 13 percent since mid-March when President Recep Tayyip Erdoğan replaced a well-respected and hawkish central bank governor, driving up import costs for import-dependent Turkey.

The depreciation was reflected in soaring producer prices, which were up 35.17 percent year-over-year in April, from 31.20 percent in March, according to data from the Turkish Statistical Institute.

Month-on-month, consumer prices rose 1.68 percent, a bit less than a Reuters poll forecast of 1.80 percent.

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