In August, inflation in Turkey increased sharply on an annual basis and rose to 58.9%, exceeding analysts’ forecasts. This increase in consumer prices poses a serious challenge for the Central Bank of the Republic of Turkey in its fight against inflation. This has been reported Bloomberg.
Inflation accelerated due to rising food and energy prices. The monthly increase in prices was 9.1%. The annual growth of the base index, excluding variable items, was 64.9%. Analysts assumed that inflation would not exceed 55.9%.
QNB Finansbank Chief Economist Erkin Işık said, “There is a noticeable increase in lower prices.”
Analysts point out that the Central Bank of the Republic of Turkey (CBRT) policy to slow down cheap lending has not yet brought tangible results. The devaluation of the lira in 2023 also protects inflationary risks.
The Turkish government promised to take all necessary measures to combat inflation. However, analysts think that the Central Bank’s target of reducing inflation to 58% by the end of the year may not be realized.
Turkish lira exchange rate in mid-August updated new all-time low.
Formerly the Central Bank of Türkiye raised The interest rate has risen to its highest level since 2021.