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Turkey Inflation Hits Highest in 24 Year

Turkey's annual rate of inflation highest hit almost 80 per cent in June its highest level in about two decades.

Consumer prices increased by 78.6% last month compared to June 2021, driven by the soaring cost of food & drink and transportation.

Food prices have almost doubled in 1 year, while the cost of transport was up 123%, according to data from the Turkish Statistical Institute.

It is another grim milestone for a country that has suffered rampant inflation in recent few months, & whose currency has Down more than 20% of its value against the USD since the start of this year.

Turkey's economy is exposed to the same forces of global inflation as for other countries,

But President Recep Tayyip Erdogan's unorthodox economic guideline have inflamed the crisis, as has the crashing lira, which makes imports So much more expensive.

In September, Erdogan ditched the rule book & told Turkey's central bank to start cutting interest rates as prices were high, rather than raise them.

At a time when the world's major central banks are increasing the price of borrowing to cool demand in a bid to tame inflation, Turkey is doing the exact inverse.

Interest cost have remained at 14% since December. Erdogan has defended his monetary policy, arguing that lowering price will bring down inflation & improve production and exports.

He has blamed his country's economic problems on foreign interference.

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