Lira weakens slightly: It goes up 19 Percent to: Inflation in Turkey climbs surprisingly strongly
Inflation in Turkey continues to rise significantly, new data on Tuesday show. This means that inflation jumps in the direction of the – percentage mark. The rate was so dramatic there at the beginning 2019.
In July, consumer prices were , 95 percent increased, announced the Turkish statistical office on Tuesday. In June the inflation rate was , 5 percent and in May at 16, 6 percent located. Most recently, the Turkish inflation rate started 2019 above the mark of 20 Percentage.
Economists were surprised by the strength of the price jump in July. They only had an inflation rate of 16, 6 percent calculated. Compared to the previous month, consumer prices rose by 1.8 percent.
Euro / Turkish Lira (EUR / TRY)
The Turkish lira weakened somewhat after the data was announced. One euro last cost 9, 9103 Lira and thus 0, 23 Percent more than the day before. However, after exchange rates of more than Lira per euro stabilized somewhat in May.
Food prices are up by a quarter The rise was mainly driven by rising food prices. Food was on average in July 24, 9 percent more expensive than a year ago. In June the increase was still at 23 percent and in May at 17 percent.
The producer prices of the companies even rose in July by 44, 9 percent. The rising manufacturing costs of companies are likely to have an impact on general consumer prices with some delay.
Inflation has increased since autumn 2019 doubled again The low rate of the Turkish Lira makes imports more expensive, while commodity prices have been rising around the world for some time. Inflationary pressures are therefore likely to remain high. The country is in a difficult economic situation, which is also reflected in high unemployment.
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Most recently, the Turkish central bank stuck to the high interest rate policy against the background of strong inflation and set the key interest rate at the interest rate meeting in July at 18, leave 0 percent. President Recep Tayyip Erdogan has always advocated rate cuts and exerted pressure with staff changes at the top of the central bank.
For example, the country’s central bank tried to get inflation under control by raising interest rates. In autumn 798 the inflation rate was temporarily up to 8, 55 percent fallen. It has more than doubled since then.
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