In Turkey galloping inflation continues unabated. In July, consumer prices rose 79.6 percent from the same month last year, the national statistics office in Ankara reported on Wednesday. In June inflation was 78.6 percent. On a monthly basis, prices rose by almost 2.4 percent.
Producer prices show how great the price pressure is at the upstream economic level. In July, they rose more than 144 percent from the same month last year, after about 138 percent in the previous month. As a result, producer prices are more than twice as high as a year ago. Producer prices usually have an indirect effect on the consumer’s cost of living, with some lag.
Weak lira also causes price rise
Inflation in Turkey is driven by several factors. The weak national currency, the lira, has long pushed prices up as it makes imports of goods into Turkey more expensive due to the exchange rate. In addition, there are problems in international supply chains that make precursors more expensive.
Central bank opposes interest rate hike
In addition, the prices of energy and raw materials are rising, mainly due to the Russian war against Ukraine. Unlike many other central banks, the Turkish central bank does not fight development by raising interest rates. Experts cite political pressure as the reason.
The central bank follows the line of President Recep Tayyip Erdogan, who argues that high interest rates cause inflation. It has so far refrained from raising interest rates, keeping its key interest rate at 14 percent since January.
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.
