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Grand Bazaar in Istanbul: Strong price pressure
Photo: Emrah Gurel/ dpa
Consumers in Turkey are feeling the effects of inflation more and more.
In August, prices rose by 80.2 percent compared to the same month last year, according to the National Statistics Office in Ankara.
Analysts had expected an even higher inflation rate.
On a monthly basis, consumer prices rose by almost 1.5 percent in August.
Producer prices show how strong the price pressure is at upstream economic levels.
They rose by almost 144 percent in August compared to the same month last year.
Producer prices are still more than twice as high as a year ago.
Producer prices affect the consumer's cost of living indirectly and with a time lag.
interest rate reduced
The high inflation is driven by several factors.
The weak national currency, the lira, has been causing prices to rise for a long time since it makes goods imported into Turkey more expensive.
In addition, there are ongoing problems in the international supply chains, which make preliminary products more expensive.
In addition, the prices of energy and raw materials are rising, mainly because of the Russian war against Ukraine.
In contrast to many other central banks, the Turkish central bank is not fighting the development by raising interest rates.
In fact, it has recently even lowered its key interest rate.
Experts point to political pressure.
mike/dpa