In Turkey, inflation continues to rise from a very high level. In July, consumer prices rose by 79.6 percent compared to the same month last year, according to the national statistical office in Ankara on Wednesday. Analysts had expected an even higher inflation rate of 80.2 percent on average. In the previous month, the inflation rate was 78.6 percent. On a monthly basis, consumer prices rose by almost 2.4 percent in July.
Producer prices show how significant the price pressure is at upstream economic levels. In July they rose by a good 144 percent compared to the same month last year, after around 138 percent in the previous month. Producer prices are therefore more than twice as high as a year ago. Producer prices usually have an indirect effect on the consumer's cost of living, with a time lag.
Inflation in Turkey is driven by several factors. The weak national currency, the lira, has been driving up prices for a long time since it makes goods imported into Turkey more expensive due to the exchange rate. In addition, there are problems in the international supply chains that make preliminary products more expensive. In addition, the prices of energy and raw materials are rising, mainly because of the Russian war against Ukraine. Unlike many other central banks, the Turkish central bank is not fighting the development by raising interest rates. Experts cite political pressure as the reason.
