Turkey raises electricity and gas prices at high rates… a new jump is expected for inflation

Turkey raised electricity and natural gas prices for homes on Saturday, citing rising global energy prices.

Local newspaper Haberturk estimated electricity prices would rise between 52% and 130% for households, as the country switched to a phased tariff system.

Under the new system, households will pay 1.37 lira ($0.09) per kilowatt-hour for electricity up to 150 kilowatt-hours of use per month, and 2.06 lira ($0.14) per kilowatt-hour for consumption above this limit as of January 1. According to what the regulator of the national markets said in a statement Friday evening.

Turkey’s state-run company Botas has raised natural gas prices by 25% for homes, 15% for power plants and 50% for factories from Jan. 1, according to a statement posted on its website late Friday.

These moves may lead to Turkish inflation increase, which is expected to accelerate to 27.4% in December, according to the median estimate in a Bloomberg survey. The Turkish Statistical Institute will announce the actual figure on Monday.

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