The collapse in AKP-MHP led Turkish economy can’t be stopped. The government is trying to overcome this threat with a snap election, but they are struggling.



HIGHEST INCREASE IS IN CLOTHING/SHOES

The rise in inflation is above what the government expected. The consumer price index increased by 1.87% in April while the monthly CPI change expectation was on the 1.20-2% increase range. A 1.5% median increase was estimated. Yearly CPI rose to 10.85% from 10.23% in April, while core inflation rose from 11.44% to 12.24%. The highest monthly increase was in clothing and shoes with 10.4%.



DOLLAR AND EURO

Dollar and Euro started to fluctuate after the inflation figures were announced. USD/TL started at around 4.16, and has seen a new record high since at 4.23. USD had risen to 4.1880, approaching its all-time high of 4.1955, when the S&P announced a demotion. EUR/TL rose to over 5.



Following the rise in the currencies, the foreign exchange basket rose to 4.6632. The highest it has ever been is 4.6954.