Turkey’s Inflation Nightmare Isn’t Going Away With Lira on Ropes

One of the lira’s worst stretches in decades is getting in the way of a turnaround in Turkish inflation as President Recep Tayyip Erdogan’s new economy team reverses the unorthodox policies used to tether the currency.

Though its steep declines didn’t completely break the disinflation momentum last month, the depreciation is stirring up price pressures just as the government moves ahead with measures that include an interim hike of 34% in the minimum wage. The lira has lost about a quarter of its value against the dollar since Erdogan’s reelection victory last month.