The inflation rate in Turkey continued its rapid acceleration in August, posing a greater challenge for policymakers attempting to address the soaring prices. According to data from the country’s statistics office Turkstat, the consumer price index rose by 58.9% compared to the same month last year, surpassing the 47.8% increase seen in July. This figure exceeded the economists’ forecasted rise to 56.1%.
In August alone, the Consumer Price Index witnessed a 9.1% surge. Food prices remained a key driver of inflation, with a staggering increase of 72.9% during the month. The prices of hotels, cafes, and restaurants rose even more significantly, recording a near 90% jump compared to the previous year. However, the housing and clothing sectors experienced relatively slower price hikes, at 25% and 31.1%, respectively.
Given the continued upward trend of prices, it is likely that Turkey’s central bank may consider raising interest rates further. Last month, the central bank implemented a larger-than-expected increase, raising rates to 25%. This move signaled a more assertive monetary policy approach in the world’s 19th-largest economy.