Turkey’s consumer inflation rate rose to a 24-year high in September as the government continues its novel plan of loosening policy into a spike in prices.
September inflation rose 3.08% for the month, pushing the annual rate to an annual rate of 83.45%, according to figures out Monday. But both were actually below consensus estimates following two surprise rate cuts totaling 200 basis points in two months that brought the benchmark rate to 12%.
The Turkish lira fell 0.4% against the dollar.
Last month, President Recep Tayyip Erdoğan called interest rates his biggest energy and said cuts to 12% were “not enough.”
Transport prices were the biggest driver of overall inflation, up 118% last month.
The annual consumer inflation rate in Turkey topped 80% in August, but the rate is still well off its highs of nearly 139% hit in 1980.
Economists surveyed by Reuters expect inflation to cool some by the end of the year, with the 2022 target of 72%.
Related ETFs: iShares MSCI Turkey (NASDAQ:TUR) and Emerging Global Shares Turkey Small Cap (TUSC).
Image and article originally from seekingalpha.com. Read the original article here.