Turkey’s inflation rate around 25 %
Official data showed on Wednesday that Turkey’s inflation rose to about 25 % year-on-year in September, its highest level in 15 years, then the Lira deteriorated.
Data from the Turkish Statistical Institute showed inflation rose to 24.52% in September from a year earlier. The inflation rate was 6.3 % from September, it is well above the average forecast in a Reuters poll of 15 economic experts of 3.6%.
The lira retreated following the publication of data that was much higher than expected. By 07:17 GMT, the Turkish currency was 6.0633 lira to the dollar, according to Reuters.
Food and beverage prices, excluding alcohol, the main contributor to consumer price inflation, rose 6.4 % from September. The prices of furniture and household appliances recorded the highest monthly increase by 11.41 %, followed by transport prices, which rose by 9.15%.
According to the data, producer prices rose 10.88 % from the previous month in September and 46.15 % year-on-year.
The Turkish lira has lost about 40% of its value since the beginning of 2018, influenced by concerns over Turkish President Recep Tayyip Erdogan’s control of monetary policy and diplomatic differences with the United States, the fall in the currency led to a rise in the prices of various commodities from food to fuel and undermined investors’ confidence.