POST TIME: 4 September, 2018 00:00 00 AM
Turkey inflation surges to 15-year high in August

Turkey inflation surges to 15-year high in August

Inflation in Turkey rose again in August to nearly 18 per cent, official statistics showed on Monday, a record since late 2003 and coming after the Turkish lira dramatically weakened against the US dollar last month, reports AFP from Ankara.

Consumer prices rose 17.9 per cent in August from the same month in the previous year, up from 15.85 per cent in July, according to the Turkish statistics office (TUIK), increasing pressure on the central bank to hike interest rates.

The figure was higher than the Bloomberg consensus forecast of 17.6 per cent.

The lira was worth 6.5 against the US dollar, a loss of nearly two per cent on the day, after the data were released.

The highest annual rise in the month was in the cost of transport, up 27.13 percent, while prices for food and non-alcoholic drinks were up 19.75 percent, TUIK said in a statement.

Last month the Turkish lira was sent into a tailspin by a bitter diplomatic spat with the United States over Turkey’s detention of an American pastor for almost two years on terror-related charges.

Washington imposed sanctions on two Turkish ministers last month and doubled steel and aluminium tariffs, putting further pressure on the Turkish currency.