Turkish inflation nearing its peak and growing concerns about the future?
The Turkish Statistical Institute announced the Consumer Price Index figures for August.
Accordingly, Turkey’s inflation rate rose 1.46% in August to 80.21% year on year, the highest level in the past 24 years.
Turkey’s annual inflation rate rose to 79.6% for the 14th consecutive month in July 2022, compared to market expectations of 80.5%. Inflation in Turkey is on course to rise above 80% soon, but the risk is that it will leave price expectations stable at high levels in the coming years.
Turkish inflation nearing its peak , according to the Turkish Statistical Institute
Recent stats show:
- The Turkish lira has fallen further over the past month and real interest rates have remained largely negative.
- Transport prices (119.1%), housing and infrastructure services (70%) increased on the back of rising energy costs (129.3%).
- The costs of food and soft drinks (94.65%) and household goods and equipment (88.4%) also increased. monthly basis
- Consumer prices rose 2.4%, reversing a 5% increase from the previous month.
According to economic analyst Bassem Al-Bitar, inflation in Turkey remained largely constant in single digits from 2004 to 2016.
But its priority is economic growth and policies that give cheap credit at the expense of the Turkish lira, the president’s interventions in the central bank policy, the multiple alternatives of the central bank governor, and the imposition of changes that are not commensurate with the current situation of Turkey. The economy has finally given way to the rounds of inflation that led to this year’s boom, and in his view, the consequences remain.