Inflation has been driven by higher taxes and fuel prices, implemented in fulfillment of Erdogan’s campaign promises, as well as massive reopening efforts after a massive earthquake.
In August, annual inflation in Turkey reached 60%, putting pressure on the central bank to further raise interest rates. This was reported by Economic Truth.
Citing data from the country’s State Statistical Agency, the publication reports that year-on-year prices rose 58.9% in August, compared to 47.8% in July.
“Those are pretty scary inflation numbers. This will increase pressure on the (central bank) and force it to raise the discount rate even more from the current 25 percent,” said emerging market economist Timothy Ash.
The economic crisis also reportedly cost Turkish President Erdogan nearly his re-election bid in May, which he won after promising his supporters massive wage increases and introducing an early retirement program worth billions. government dollars.
Inflation is said to be driven by higher taxes and fuel prices, introduced to fulfill Erdogan’s campaign promises, as well as massive reopening efforts after a massive earthquake.
In August, it was reported that inflation had slowed significantly in Ukraine.
Source: korrespondent
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