The Limited Times

Now you can see non-English news...

Inflation rate in Turkey rises to 21.3 percent in November

2021-12-03T11:14:55.451Z

The Turkish President Recep Tayyip Erdogan wants to boost the country's exports, the currency lira lost 30 percent in value in one month. But that makes imports more expensive and drives inflation immensely.



Enlarge image

Greengrocer in Istanbul: Experts believe inflation is even higher than stated

Photo: Sadat / dpa

According to official figures, the inflation rate in Turkey rose to 21.3 percent year-on-year in November.

That is the highest value in three years, as the Turkish statistics agency announced on Friday.

In October, inflation was 19.9 percent.

The government’s official target is a five percent increase in consumer prices.

The main reason for the high inflation rate is the devaluation of the Turkish currency, which makes imports more expensive.

The lira had lost around 30 percent of its value against the dollar in the past month alone.

Since the beginning of the year it has been more than 45 percent.

On Friday morning, one dollar was worth 13.87 lira.

Contrary to prevailing economists, the Turkish central bank only lowered its key interest rate again in November - from 16 to 15 percent.

It thus corresponded to the wish of President Recep Tayyip Erdogan, who wants low interest rates in order to stimulate the economy and exports.

Observers expect the central bank to cut the key rate again in mid-December.

Erdogan has fired three central bank chiefs since 2019.

On Wednesday he fired Finance Minister Lütfi Elvan and replaced him with his confidante Nureddin Nebati.

According to official figures, the country's economy grew by 7.4 percent year-on-year in the third quarter.

Over the year as a whole, growth is expected to be around nine percent.

Doubts about official numbers

Opposition leader Kemal Kilicdaroglu doubts the official data and said on Twitter on Friday that he had asked for a meeting with representatives of the statistics agency.

That was rejected.

TV channels showed Kilicdaroglu in front of the authority's locked gates.

Analyst Timothy Ash was also astonished: "The lira falls by 30 percent in one month and prices only rise by 3.5 percent" compared to the previous month?

“That doesn't make sense.” He said he had “serious doubts” about the official inflation data in the future.

In Turkey, the inflation rate has been almost consistently in double digits since the beginning of 2017.

The prices for some staple foods such as eggs, meat and oil rose above average.

kig / afp

Source: spiegel

All business articles on 2021-12-03

You may like

News/Politics 2021-12-18T11:05:29.712Z
News/Politics 2022-01-03T11:07:14.734Z
Business 2021-12-03T18:33:41.436Z
News/Politics 2022-01-03T08:55:29.895Z

Trends 24h

Latest

© Communities 2019 - Privacy