Turkey’s Annual Inflation Reached 17.9% …
Turkish Statistical Institute announced food prices 20% ↑ ‘
Turkey inflationary pressures have been caught by the plunge in the value of the currency this year, annual inflation has jumped to a record high for the third consecutive month.
The National Statistical Office (NSO) announced on March 3 (local time) that the inflation rate was 17.90% in the previous month. This rate is highest since October 2003 when the current price index calculation method was introduced.
Turkey ‘s monthly annual inflation has hit a record high for three consecutive months since June this year. Consumer price inflation, which excludes volatile food and energy prices, also deteriorated to 17.22% after 14.6% in June and 15.1% in July. Food price inflation also remained high at 19.75% this month, following last month’s 19.4%.
In 2010-2016, Turkey’s annual inflation moved from 6% to 8% except for 2011, which was 10.45%, but it reached double-digit growth rate of 11.9% last year.
The main source of soaring prices is the weakening of liras. The value of lira ㄹfell 42% from the dollar this year.
Although the most effective measure for inflation management is interest rate hikes, the outlook for the market is skeptical about whether the central bank will raise interest rates enough to hold prices.
Meanwhile, Turkish President Lechiev Taipei Erdogan has expressed an extremely negative view on the rate hike by emphasizing a peculiar economic view that raises interest rates.