Turkey's central bank keeps rate steady amid high inflation

Turkey$$s central bank has cut rates by $5$ percentage points since September despite high inflation, then has paused them since January. The series of rate cuts last year triggered a currency crisis and rising consumer prices that have been aggravated by Russia$$s invasion of Ukraine and soaring energy costs.

Yearly inflation hit $61\mathrm{.}14$ per cent in March, deepening the squeeze on households that were already struggling to purchase basic goods. The Turkish lira lost $44$ per cent of its value against the US dollar last year. In an effort to soften the blow on households, the government has implemented tax cuts on basic goods and has adjusted electricity tariffs.

Source: Adapted and edited from CNA, $14$ Apr $2022$

i$.$ Explain two types of inflation experienced in Turkey for $2022.$

ii$.$ Analyse the respective consequences on households and businesses for each of the types of inflation you have identified in part $($i$)$