In Turkey, inflation fell slightly for the first time in more than a year. Consumer prices rose by 84.4 percent in November, the statistics office announced today. In the previous month, inflation was 85.5 percent, its highest level in 24 years. On a monthly basis, consumer prices rose by 2.9 percent in November. That was also slightly less than in the previous month.
Upstream prices also weakened at the upstream economic level – albeit from a very high level. Producer prices rose by 136 percent in November compared to the same month last year, following almost 158 percent in October. They reflect the selling prices of the producers and usually influence the consumer’s cost of living.
Inflation is driven by several factors. The weak national currency, the lira, is the main driver of the boost, as it makes goods imported into Turkey more expensive. There are also problems in the supply chains, which make many primary products more expensive. In addition, the prices of energy and raw materials are rising, mainly because of the Russian war once morest Ukraine.
In contrast to many other central banks, the Turkish central bank is not fighting inflation by raising interest rates. In fact, it has recently lowered its key interest rate several times.
