After Turkey's diplomatic relations with the US have again improved somewhat with the mutual lifting of sanctions, Turkey's President Recep Tayyip Erdogan has also been hoping to improve his country's economic situation.
But nothing there: The crash of the Turkish national currency lira has caused inflation to rise further in Turkey. Consumer prices in October were 25.24 percent higher than a year earlier, as the national statistics office Turkstat announced on Monday. In the previous month, the rate of inflation had amounted to 24.52 percent. The price hike in October is the strongest since mid-2003, ie over 15 years.
▶ ︎ For the people of Turkey, this means that their money is worth less and less. For clothing alone, prices rose 12.74 percent compared to September. Furniture and household items cost 37.92 percent more in October than a year ago.
The increase in inflation was slightly higher than expected by economists, but much lower than in September, when prices had risen by 6.3 percentage points m / m. At that time, the lira had collapsed significantly after the announcement of inflation figures.
Lira on easy recovery course
Above all, the high inflation is a consequence of the strong losses of the Turkish lira. In August, the currency lost ground amid a dispute with the US, peaking at $ 7.10 lira for a dollar. The development increases the price of imports to Turkey, to which the country depends. Turkey has a chronic current account deficit, importing more goods than it exports.
Since the beginning of September, the lira has been recovering on Monday at a level of about 5.4 lira per dollar. Two days earlier, speculation that Turkey and seven other countries would be exempted from the new Iranian oil sanctions had led to a three-month high for the lira. The list of states that qualify for such exemptions will be published on Monday.