Turkey’s inflation rate hits 25 percent, producer prices increase by 46 percent

Turkey’s year-on-year consumer inflation rate rose to almost 24.5 percent in September, while the producer price index jumped to 46 percent, according to data from the Turkish Statistical Institute.

Turkey’s currency crisis had ignited a boom in prices across the economy, the Financial Times said. The annual consumer inflation rate was 17.9 percent last month and 11.2 percent last September.

The main areas that saw the biggest price increases were transportation, which went up 36.61 percent, miscellaneous goods and services 30.61 percent, food and non-alcoholic beverages 27.7 percent, and housing, which increased by 21.84 percent, the Turkish Statistical Institute said. 

Producer prices soared year-on-year to 46.15 percent, a 10.88 percent monthly increase, signalling that inflation is likely to rise further in the coming months as rising costs are passed onto consumers. The government’s New Economic Programme unveiled last month predicted an inflation rate of 20.8 percent for 2018.

Producer prices increased by 40.21 percent for electricity and gas, 16.95 percent for crude petroleum and natural gas, and 13.74 percent for chemicals and chemical products. 

The lira fell 1.44 percent following the announcement of worse-than expected figures, the Financial Times said. 

The Turkish currency has dropped by almost 40 percent against the dollar since the start of the year and hit record lows in August due to a diplomatic crisis between United States and Turkey over the detention of an American pastor.