Chronic inflation

The International Monetary Fund on Sept. 6 urged Turkish authorities faced with a falling currency and surging inflation to pursue "sound" economic policies to stabilize the situation.

The inflation data in August clearly proved that inflation is not solely caused by food, as we reached the highest core inflation rate in the last 12 years at 10.2 percent. Indeed, this core inflation rate has occurred in a year when the official inflation target is 8 percent.

Turkey's annual inflation rate stood at 10.68 percent in August, revisiting double digits, with price hikes in cars, oil and LPG becoming the driving force, according to figures by the Turkish Statistical Institute (TÜİK) released on Sept. 5. 

When inflation dropped after six months to a single digit at the end of July, it created a festive joy. 

With the August inflation rate to be announced this week, the annual inflation figure is expected to rise to double digits again.

The Turkish government's measures to ease skyrocketing prices are ready to be applied, amid aims to gradually bring down inflation rate to single digits again, a top official announced on May 22. 

It is unacceptable for Turkey to see double-digit inflation rates, a top official has admitted, adding that the government's food committee would soon hold a meeting to take immediate measures to ease skyrocketing food prices. 

"This is an unacceptable situation," Deputy Prime Minister Mehmet Şimşek said at a meeting in Istanbul on May 5. 

Turkey's annual inflation hit 9.2 percent in January from the previous month's 8.53 percent, making it the highest inflation rate in a year amid a decline in the Turkish Lira and a rise in food prices. 

The consumer price index rose by 2.46 percent in January, according to data released by the Turkish Statistics Institute (TÜİK) on Feb. 3. 

While the average January increases in consumer prices is around 1 percent, the increase this January reached 1.82 percent, which was quite a surprise. When the monthly rate reached 1.82 percent, then the annual inflation, which stood at 8.81 percent in December 2015, jumped to 9.58 percent at the end of January.

Turkey's annual inflation rate increased above estimates to 8.1 percent in November from 7.58 percent in October due to a sharp hike in footwear and clothing prices, according to data revealed by the Turkish Statistics Agency (TÜ?K) on Dec. 3. 

The highest monthly increase was 5.37 percent in clothing and footwear, according to the TÜ?K data. 

July inflation was generally in line with market expectations; thus annual inflation rates continued dropping. Annual inflation as of the end of July is at its lowest level for the past 26 months, even lower than May 2013, becoming 6.81 percent.