Official figures showed today, Monday, that the inflation rate in Turkey jumped to its highest level in 24 years, exceeding 83% last September, a week after the Central Bank announced a cut in interest rates.
Sharjah 24 – AFP:
The inflation rate in Turkey rose to its highest level in 24 years, exceeding 83% last September, official figures showed today, Monday, a week after the Central Bank announced a cut in interest rates.
Those responsible for monetary policies in Turkey oppose the international approach of raising interest rates by the central bank to fight inflation, while high borrowing rates are calming the economy and prices.
Turkish President Recep Tayyip Erdogan, who is focused on growth ahead of a general election in June, has consistently asserted that high interest rates encourage inflation and considers it his “biggest enemy”.
The central bank followed its theory, lowering the rate from 13 to 12% last month.
Erdogan also called for a new interest rate cut at the Bank’s next monetary policy meeting on October 20.
The official Turkish Statistics Agency stated that consumer prices rose by 83.5% last September, compared to the same period last year.
The Turkish currency recorded a further decline, reaching 18.56 pounds against the dollar, following the announcement, but opposition leaders and a large number of Turks no longer trust official government figures.
A reliable monthly study, published by independent economists from the Turkish research institute ENAG, showed that prices rose by a higher percentage compared to the figures of the statistics agency.
The institute added that the official annual rates of consumer price hikes reached 186.27 percent in September, compared to 181.37 percent in August.