Turkey Annual Inflation Rose to Three-Year High in November
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
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,
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 firstname.lastname@example.org
(END) Dow Jones Newswires
December 03, 2021 02:25 ET (07:25 GMT)
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