The inflation rate in Turkey rose to 80.2 percent, the rate of growth is slowing down

The inflation rate in Turkey rose to 80.2 percent, the rate of growth is slowing down
The inflation rate in Turkey rose to 80.2 percent, the rate of growth is slowing down

Ankara – The inflation rate in Turkey rose to 80.2 percent in August and is the highest since September 1998. In addition to energy prices, prices for transportation, household equipment and food contributed to the growth. The Turkish Statistical Office announced this in its report today. A year ago, inflation was just under 20 percent.

The pace of price growth is thus slowing down and the result for August is better than analysts expected. According to Bloomberg, they expected the inflation rate to exceed 81 percent. In August, prices increased by 1.46 percent compared to July, after a month-on-month increase of 2.37 percent in July, again slower than analysts’ estimates.

In July, the inflation rate was 79.6 percent. Since the beginning of this year, prices for consumers have increased by 47.9 percent.

Inflation began to accelerate last fall, when the Turkish lira fell sharply. Despite high inflation, the Turkish central bank continued to cut interest rates, while other central banks usually raise rates in such a situation.

Prices for housing and public services rose by 71.8 percent year-on-year in August, and prices for transportation by 116.9 percent. Energy prices are also increasing significantly, by 121.7 percent year-on-year. People in Turkey had to pay 90.3 percent more year-on-year for food and drink, and 92 percent more for furniture and household equipment than a year ago. Prices in hotels and restaurants have risen by 90 percent.

From 2004 to 2016, Turkey had relatively stable inflation, hovering in the single digits. But the policy, which favored economic growth and cheap credit at the expense of the value of the lira and price stability, backfired on the country. It has spun an inflationary spiral that culminates in these months.

Turkey inflation August

The article is in Czech

Tags: inflation rate Turkey rose percent rate growth slowing

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