Official data released on Monday showed inflation in the country reached 58.9% year-on-year in August, the highest since December 2022.
The price rose nearly 60% from August last year, but rose 9.1% from the previous month due to the Turkish lira’s depreciation.
Inflation began to accelerate again in July, reaching 47.8% y/y after eight months of decline. The lowest level in a year and a half was 38.2% year-on-year in June, and the highest level was in June. 85.5% in October 2022.
While the official numbers are high, they may not even reveal the full extent of the problem.independent economist from Inflation Research Group (Enag) The year-on-year rate of increase in consumer prices reaches as high as 128%.
Turkey’s central bank, whose mandate is to protect price stability, has raised its key policy rate to 25% from 8.5% since June to curb inflation.
At the end of July, as inflation began to pick up again, the central bank revised its projections, saying inflation would reach 58% by the end of 2023, more than double its previous forecast, and return to “stable” from 2025. Ta.
Turkey has been experiencing a steady stream of double-digit inflation since the end of 2019, making it difficult to cover the cost of living. families across the country.
