Thursday, July 06, 2023 12:27 PM – Jerusalem time
Ankara – (Xinhua)
Official data on Wednesday showed that the Turkish consumer price index rose by 3.92 percent month-on-month in June, the highest rise since January.
Turkey’s annual inflation rate reached 38.2 percent in June, according to the Turkish Statistical Institute. Meanwhile, the producer price index rose 6.50 percent month-on-month in June, and 40.4 percent year-on-year.
Turkish President Recep Tayyip Erdogan, who was re-elected in May, formed a new economic administration, assigned economist Mehmet Simsek to the Ministry of Finance and Treasury, and appointed Hafiza Gaya Erkan as head of the Turkish Central Bank, raising hopes that the country would move away from its unconventional strategy of maintaining oil prices. Low interest even when inflation rises.
However, the Turkish currency continued to decline against the US dollar after the central bank raised the interest rate to a level lower than market expectations last month.
The central bank raised the interest rate from 8.5 percent to 15 percent in June, the first increase in 27 months. The bank also noted that monetary tightening would continue “in a gradual and timely manner until a significant improvement in inflation expectations is achieved.”
The Turkish lira witnessed a significant decline of more than 60 percent against the US dollar in the past two years.
The country’s inflation rate hit a 24-year high of 85.5 percent in October last year. The annual inflation rate has since slowed to 39.6 percent in May.
2023-07-06 09:31:48
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