Lira under pressure: Turkish inflation rate at 20 percent

Status: 03.11.2021 09:50 a.m.

The rise in consumer prices in Turkey continued to accelerate in October. The inflation rate soared to 19.9 percent. This is also putting the Turkish lira under further pressure.

In October, nationwide consumer prices rose by 19.9 percent compared to the same month last year, as the national statistics office announced in Ankara on Wednesday.

Compared to the previous month alone, prices rose by 2.4 percent. In September the inflation rate was 19.6 percent. Analysts had feared an even stronger increase to 20.4 percent on average.

The fresh economic data is putting the Turkish lira under further pressure in the currency markets. 11.17 lira are paid for one euro – 0.4 percent more than the day before.

Only a few days ago, in the wake of the surprisingly significant rate cut by the Turkish central bank, the lira fell to record lows against the euro and dollar.

Erdogan likes to swap central bankers

Critics complain that the course of the Turkish central bank is significantly influenced by President Recep Tayyip Erdogan. This is considered a declared opponent of high interest rates.

Erdogan had repeatedly changed the top of the central bank and, according to experts, massively damaged confidence in the lira and thus significantly promoted the decline in the Turkish currency.

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