Inflation in Turkey is still on the rise. In October consumer prices rose by 20 percent compared to the same month last year, as the statistics office announced on Wednesday. In the previous month, the inflation rate was 19.5 percent. Investors have recently been worried about inflation, which is why they are avoiding the Turkish lira. Turkey’s national currency has come under massive pressure against the dollar and the euro in recent months and has fallen to record lows in each case.
The situation is exacerbated by the loose monetary policy of the central bank, which recently lowered its key interest rate twice despite the rise in inflation. Critics complain that the course is significantly influenced by President Recep Tayyip Erdogan, who is considered a declared opponent of high interest rates. Erdogan has repeatedly changed the top of the central bank.
