By Maria Martinez
Turkey's annual rate of inflation rose for the seventh consecutive month in December, rising to its highest level since September 2002, as a weaker lira and higher inflation expectations pushed prices up further.
The consumer price index rose 36.08% in December compared with the same period of 2020, the Turkish statistics office Turkstat said Monday.
Consumer prices were up 13.58% on month in December, Turkstat said.
Facing pressure from President Recep Tayyip Erdogan, the Turkish central bank in December cut its benchmark interest rate for the fourth time in four months, despite rising double-digit inflation that sits far above its 5% medium target. The president remains fixated on the unconventional view that higher rates cause, rather than rein in, price rises.
The prospect of further rate cuts has sparked a severe selloff in the lira, increasing the cost of essential imports and stoking inflation.
Write to Maria Martinez at firstname.lastname@example.org
(END) Dow Jones Newswires