By Nihad Ahmed

Turkey's annual rate of inflation rose for the sixth consecutive month in November to a three-year high as a weaker lira and higher inflation expectations pushed prices up further.

The consumer price index rose 21.31% in November compared with the same period of 2020, the Turkish statistics office Turkstat said Friday.

Hotels, cafes and restaurants posted the biggest on-year increase, followed by the food and non-alcoholic beverages category, Turkstat data showed.

On an on-month basis, consumer prices were up 3.51% in November, Turkstat said.

Facing pressure from President Recep Tayyip Erdogan, the Turkish central bank in November cut its benchmark interest rate for the third time in three months, despite rising double-digit inflation that sits far above its 5% medium target. The president remains fixated on the unconventional view that higher rates cause, rather than rein in, price rises.

The prospect of further rate cuts has sparked a severe selloff in the lira, which has lost some 45% of its value this year, increasing the cost of essential imports and stoking inflation.

Write to Nihad Ahmed at nihad.ahmed@wsj.com

(END) Dow Jones Newswires

December 03, 2021 02:25 ET (07:25 GMT)

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