In Turkey, high inflation continues to rise. Consumer prices rose 80.2 percent year-on-year in August, according to the National Statistics Office in Ankara. Analysts had even expected slightly higher inflation. In July inflation was just under 80 percent.
On a monthly basis, consumer prices rose by almost 1.5 percent in August. Producer prices show how strong the price pressure is at the upstream economic level. They rose nearly 144 percent in August from the same month last year. Producer prices are still more than twice as high as a year ago. Producer prices indirectly and with some delay influence the cost of living of the consumer.
Weak lira causes price hikes
The high inflation is caused 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.
Central bank opposes interest rate hike
Unlike many other central banks, the Turkish central bank does not oppose the development by raising interest rates. In fact, it even recently cut its key interest rate. Experts point to political pressure.
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.
