The devaluation of money in Turkey is progressing – albeit less rapidly. In July, according to official information, inflation was 33.5 percent. However, independent economists doubt the data.
In Turkey, the increase in consumer prices has continued to slow down according to official data. In July, consumers had to pay 33.52 percent more than a year earlier, the Turkish statistics office Tüik said. That was the lowest value since November 2021.
In June, the inflation rate was still 35.05 percent. From June to July, prices attracted 2.06 percent. The monthly inflation was driven primarily by price increases in living 5.78 percent as well as in alcoholic beverages and tobacco of 5.69 percent.
Two -digit inflation for five years
The official inflation rate has been in the double -digit percentage range for around five years. At the end of 2022 she peaked at 85 percent. However, independent economists doubt the official data. The research group Enag assumes that the inflation rate was 65.1 percent in July.
The Turkish Central Bank has recently predicted temporary acceleration of monthly inflation due to the increase in fuel and tobacco taxes as well as higher natural gas prices.
Leist interest is further withdrawn
Nevertheless, the central bank had reduced its key interest rate from 46 to 43 percent on July 24 and thus initiated a new round of the relaxation of its monetary policy. It was only last year that she had started the fight against inflation with interest increases. Previously, head of state Recep Tayyip Erdogan had long rejected a strict monetary policy, despite the rapid devaluation of money, contrary to the common teaching opinion.
Analysts of the US Großbank Morgan Stanley assume that the central bank will reduce its key interest rate three times this year. It is said to be 36 percent at the end of the year.
At the same time, the central bank assumes a decline in inflation rate to 24 percent by the end of the year. She actually strives for a five percent rate.
