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Inflation in Turkey is at the highest level in 15 years



32 minutes on November 6, 2018
– Last updated on
November 5, 2018/22:57

Turkey's annual inflation rate reached 25 percent in October, the highest level in 15 years, official data showed yesterday, highlighting the ongoing impact of the currency crisis on the economy in general.

Retail prices jumped 2.67 percent from the previous month, beating expectations of a 2 percent increase in a Reuters poll. The increase in inflation in October was caused by increases in clothing and footwear prices by 12.74 percent compared to the previous month, and housing by 4.15 percent. There was a slight reaction to lira, which weakened to 5.44 against the dollar from 5.43 lira before the numbers were released. The currency finally recovered from losses caused by concerns over central bank independence and disputes between Turkey and the United States.

The head of the Turkish Central Bank, Mourad Jetin Qaya, expects inflation to fall slightly this year to 23.4 percent, to 15.2 percent next year and 9.3 percent by 2020, stressing that "the central bank will use the steps available to maintain About price stability and inflation rates ».

He added that "the central bank will make a positive contribution to the new economic program, which was announced by the Ministry of Finance and Finance in September, through the implementation of strict financial policies". He noted that the strict fiscal policy framework does not go through increasing taxes, but through reducing spending and stabilizing prices.

He pointed out that global economic growth and financial policy in developed countries and oil and food prices, played an important role in determining inflation rates, emphasizing that "the Central Bank will use all available measures for it to maintain price stability and inflation rates. Data shows that exports Turkey in September was 22.4 percent year-on-year, compared with the same month last year.The foreign trade deficit declined by 77.1 percent in September to $ 1.869 billion.

Data from the Institute of Statistics recently showed that the unemployment rate was 10.8 percent between June and August, compared with 10.2 percent between May and July. The non-agricultural unemployment rate averaged 12.9 percent between June and August, according to figures, compared with 12.1 percent between May and July.

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