Turkey’s annual inflation rose to its highest level of the year in November, reaching 61.98%. The Consumer Price Index (CPI) recorded a monthly increase of 3.28%, slightly lower than the projected 3.9%. Experts had anticipated that inflation would reach 63% in November and 67% by the end of the year.

A senior economist at Capital Economics, Liam Peach, stated that these data indicate a continued rise in inflationary pressures in the economy. He also predicted that the currency depreciation cycle will conclude by the end of this month, leading to a significant increase in inflation. The current inflation rate is expected to surpass the target, reaching 70-75% by May.

In October, annual inflation decreased for the first time in three months, reaching 61.36%. However, it rebounded in November and reached a 24-month high at 85.51%. This year, inflation has remained around 35%, causing the dollar to significantly devalue and decreasing the purchasing power of Turks.

To curb inflation, the Central Bank has implemented measures such as low interest rates since June, which has been supported by President Tayyip Erdogan. The bank has also increased interest rates by 3150 basis points and introduced lending regulations. Additionally, the decline in residential construction activities has contributed to curbing inflation.

The Central Bank raised its benchmark interest rate to 40% last month and stated that the tightening will continue for a short period of time. Although domestic demand may be weakening, high inflation, rising purchasing prices, and geopolitical risks are still exerting pressure on inflation.

Source: News from Armenia – NEWS.am