Turkish inflation ticks up in July at nearly 48%

AFP , Thursday 3 Aug 2023

Turkey's annual inflation climbed in July to 47.83 percent, up sharply from 38.2 percent, official data showed on Thursday.

turkey
Members of the civil servants unions hold a banner that reads Raise, crisis, poverty, we are running out as they protest in front of the Ministry of Labor in Ankara, on August 1, 2023. AFP

 

The new figure, in line with expectations, comes a week after the central bank more than doubled its year-end forecast to 58 percent from 22.3 percent after years of doubts from independent economists about the official rate.

The official rate had been steadily dropping since reaching a more than two-decade high of 85 percent in October last year. The central bank and economists have forecast an upward trend from July.

At her debut press conference last week, new central bank governor Hafize Gaye Erkan said inflation would be rise "temporarily" due to the rising exchange rate of the lira as well as fiscal measures.

Under the former Goldman Sachs and First Republic Bank executive, the central bank twice hiked its interest rates from 8.5 percent to 15 percent.

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