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Anyone who goes shopping at a market in Istanbul like here has to dig deeper into their pockets
Photo: ARIS MESSINIS / AFP
In September the inflation rate in Turkey was 19.6 percent.
Now the value has risen to 19.9 percent.
This was announced by the national statistical office in Ankara.
Analysts had feared an even stronger increase to 20.4 percent on average.
For comparison: In Germany, the inflation rate is also significantly higher than intended by monetary policy, but currently amounts to "only" 4.5 percent.
The strong inflation in Turkey has been a headache for investors for a long time, which is why they are avoiding the Turkish lira.
Turkey's national currency has come under considerable pressure against the dollar and the euro in recent months and has fallen to record lows in each case.
This is fueling inflation as imported goods become more expensive.
The situation is exacerbated by the loose monetary policy of the Turkish central bank, which has recently significantly reduced its key interest rate twice despite the high inflation.
According to economists, interest rate hikes are more advisable in the current situation.
Critics complain that the course is significantly influenced by President Recep Tayyip Erdoğan, who is considered a declared opponent of high interest rates.
Erdoğan has repeatedly changed the top of the central bank.
The current central bank chief Sahap Kavcioglu has only been in office since March after his predecessor Naci Agbal was dismissed for raising interest rates.
Kavcioglu is now the fourth central bank governor since 2019.
atb / dpa
