High inflation in Turkey continues to rise. In September, consumer prices were 83.5 percent higher than a year earlier, the National Bureau of Statistics said Monday. Analysts had even expected slightly higher inflation. In the previous month, inflation was around 80 percent. On a monthly basis, consumer prices rose by more than 3 percent in September.
Producer prices show how strong the price pressure is at the upstream economic level. In September, they rose by about 151 percent compared to the same month last year. As a result, producer prices are more than twice as high as a year ago. Producer prices indirectly and with some delay influence the cost of living of the consumer.
Many factors lead to inflation
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.
Interest policy influenced politically?
Unlike many other central banks, the Turkish central bank does not fight rising inflation by raising interest rates. In fact, it has recently cut its key interest rate several times. Experts point to political pressure. President Recep Tayyip Erdogan is an outspoken opponent of high interest rates and recently called for further rate cuts.
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.
