The Inflation in Turkey rose in October to 25.2 percent. The office for national statistics said. The crash of the Turkish currency, the Turkish Lira has led to the largest price increase since mid-2003.
In October, the prices for household goods (37.9 percent), transportation (32 percent) and food (29.3%) grew particularly strongly. The Lira depreciated after the notification of 0.5 percent of its value and traded at a rate of 5.45 to the Dollar.
The high Inflation is mainly a result of the strong devaluation of the Turkish Lira. This was lost in August in the middle of a dispute between Turkey and the USA, massively. After the release of the imprisoned American Pastor Andrew Brunson in October, the ratio of Washington, which led on Friday to the lifting of mutual sanctions relaxed. Meanwhile, the Lira has made up a portion of their losses, but is still well below its level of the beginning of the year.
Inflation rose in October more than Economists expected far less, however, than in September, as the prices in the month were up compared to 6.3 percentage points, and Inflation to 24.5 per cent. At that time, the Lira slumped after the announcement of the inflation figures. (Read here how the economic and currency crisis in Turkey could be stopped.)
The downward trend in the Lira is more expensive, and imports into Turkey, the country urgently needs. Because Turkey has a chronic current account deficit. Much more than consumer prices, the prices increased, the manufacturers for their products. They rose in October year-on-year by over 45 percent. The manufacturer prices is delayed, the consumer prices in Parts and time.
Lira-deterioration, Inflation, and co. Five diseases of the Turkish economy
After months of inaction had increased, the Central Bank in September the key interest rate by 625 basis points to 24 percent. Despite the resulting temporary stabilization of the Lira extends the currency crisis, an economic crisis, Turkish companies have recorded a majority of their loans in dollars and Lira, you can pay your debts. The rating Agency Standard & Poor’s downgraded Turkey’s credit rating to junk level down.
The Turkish Minister of Finance, Berat Albayrak had announced in October a “fight against Inflation”. Albayrak wants to cut taxes for the automobile industry, household appliances and furniture. Previously, the Ministry of Finance, export had been obliged to leave in the next half year, 80 percent of their revenues in Turkish banks. Real estate transactions may now be settled only in Lira. President Recep Tayyip Erdogan announced to the stock of shops, the prices disproportionately raise of the police storm.
For 2019 expects the Turkish Central Bank with a rise in consumer prices by 15.2 percent.