Turkey Annual Inflation Rose to a Nineteen-Year High in December

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By Maria Martinez
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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.

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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.

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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.

Write to Maria Martinez at [email protected]

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