By Maria Martinez
Turkey’s annual inflation rate rose for the seventh consecutive month in December, reaching its highest level since September 2002, as weak lira and higher inflation expectations pushed prices higher.
Turkey’s statistics office Turkstat said on Monday that the consumer price index rose 36.08% in December compared to the same period in 2020.
Turkstat said consumer prices rose 13.58% in December.
Faced with pressure from President Recep Tayyip Erdogan, Turkey’s central bank in December cut its benchmark interest rate for the fourth time in four months, despite rising double-digit inflation, which far exceeded its 5% moderate target. Is. The president holds to the unconventional view that higher rates cause, rather than restrain, increases in prices.
The prospect of further rate cuts has triggered a severe sell-off in the lira, raising the cost of essential imports and driving up inflation.
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