Runaway inflation in Turkey continues to rise. Consumer prices in October were 85.5 percent higher than a year earlier, the national statistics office said Thursday. In contrast, inflation in Switzerland fell further in October to three percent.
Analysts had expected inflation in Turkey to be about the same at this level. In the previous month, inflation was 83.4 percent. On a monthly basis, consumer prices rose by 3.5 percent in October.
Turkey: producer prices rise by 157.7%
Consumer prices in Turkey have been rising sharply for about a year now. At the end of 2021, inflation was only around 20 percent. Producer prices, which rose by 157.7 percent year-on-year in October, show how strong the price pressure is at the moment.
Producer prices fix the prices at the producer level by displaying the selling prices of the producers. The annual pace of producer prices is more than double what it was a year ago. Producer prices indirectly and with some delay influence the cost of living of the consumer.
Weak national currency Lira
In Turkey, high inflation is driven by several factors. The weak national currency, the lira, has long pushed prices up because it makes importing goods into Turkey more expensive. In addition, there are ongoing problems in international supply chains, making precursors more expensive. In addition, the prices of energy and raw materials are rising, mainly due to the Russian war against Ukraine.
Swiss inflation: second consecutive decline
In contrast, inflation in Switzerland fell further in October. This is the second decline in a row. However, consumer prices in October were still three percent higher than in the previous year, the Federal Bureau of Statistics (BFS) announced on Thursday. In August, inflation peaked, at least for now, at 3.5 percent, its highest level in nearly 30 years.
Swiss gas and heating oil prices have risen
Moreover, imported goods are still more expensive, 6.9 percent more expensive in the month under review than a year ago (after +7.8 percent in September). In the case of domestic goods, annual inflation was only 1.7 percent. Prices for gas, heating oil and mobile network communications have risen, as have those of clothing and shoes. In contrast, prices for combined fixed and mobile network offers, fuel and new cars have fallen.
Internationally, Switzerland is therefore an island when it comes to inflation. For example, inflation in the eurozone stood at 10.7 percent in October, the highest level since the introduction of the single currency in 1999. In the US, it stood at 8.2 percent in September, while inflation there rose to 9 in June. 1 percent had reached the highest level in more than 40 years.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
