Turkish inflation rose year-on-year in September to a 24-year high of 83.45%, its acceleration for the 16th consecutive month boosted by the weakness of the local currency (the Turkish lira) and the negative effects of Russia's military invasion of Ukraine, which are expressed in a continued strong increase in the prices of raw materials.

Turkey's consumer price index (CPI) rose by 3.08% in September compared to August, the country's official statistics show.

Compared to a year earlier, September inflation accelerated to a new 24-year high of 83.45%, up from 80.21% in August.

This is the country's highest inflation rate since July 1998 and much higher than in September 2021, which was at "just" 19.58%.

The most drastic growth in September on an annual basis was in transport prices (a jump of as much as 117.66%) as a result of the sharp increase in energy prices against the background of the war in Ukraine, followed by that of food and soft drinks prices (by 93 .05%), on furniture and household equipment (increase by 89.68%), on housing (by 84.67%), on alcoholic beverages and tobacco products (by 82.48%) and on prices in hotels, cafes and restaurants (81.34% increase).

The weakest annual price increases in September were in communications (up 30.76%), education (up 36.69%), clothing and footwear (up 40.28%) and healthcare (up 60.84%). ).

Towards the end of September, Turkey's central bank cut its key interest rate to 12% from 13% despite a sharp rise in prices in the country, with the bank again saying it expects inflation to start falling.

Last year, President Recep Erdogan

Recep Tayyip Erdogan - Turkish politician and prime minister.

Born on February 26, 1954 in Istanbul, he ends up forcing the central bank through a series of interest rate cuts that he says are part of his "new economic model."

The prime rate fell despite rising consumer prices.

Economists believe his approach has exacerbated the fallout worldwide from a spike in food and energy prices caused by Russia's invasion of Ukraine.

Inflation in Turkey is becoming a hot political issue ahead of next year's general elections - widely seen as the worst of Erdogan's two-decade rule.

Recep Erdogan

Turkey

inflation