IIn Turkey, inflation has picked up speed again. Year-on-year, consumer prices rose by 61.5 percent in September, as the statistics office announced on Tuesday in Ankara. Analysts on average had roughly expected this increase.
In the previous month the inflation rate was 58.9 percent and in July it was 47.8 percent. Month-on-month, consumer prices rose by 4.75 percent in September, the statement continued. Following the release of inflation data, the Turkish lira fell to a record low against the US dollar.
Last year, the inflation rate in Turkey temporarily rose to a good 85 percent. Inflation weakened in the meantime, but has picked up speed again since June.
The statisticians recorded the strongest price increase in September in hotels and restaurants. Prices here have almost doubled, increasing by around 92 percent year-on-year. A key reason for the high inflation is the weak local currency, the lira, which makes imports into Turkey more expensive. Although the Turkish central bank has recently been fighting very high inflation with sharp interest rate increases, the lira remains under pressure. In the morning, one US dollar cost 27.60 lira at times, which is more than ever before.
Experts explain the currency weakness with uncertainty about future monetary policy. President Recep Tayyip Erdogan is considered an opponent of high interest rates, which experts believe are necessary to support the lira and curb inflation.
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