Mon, 25 Oct 2021

ISTANBUL, Aug. 3 (Xinhua) -- Turkey's annual inflation jumped to 18.95 percent in July, the highest in the last 26 months, the Turkish Statistical Institute revealed on Tuesday.

The country's monthly inflation increased by 1.8 percent in the same month, according to the data.

The highest annual price rise was reported in food and non-alcoholic beverages and transportation, climbing by 24.92 percent and 24.62 percent respectively.

"The annual increase in food and transportation is close to 25 percent and exceeds the average by six points," Mustafa Sonmez, an economy writer, tweeted after the announcement of the institute.

Meanwhile, the producer price index increased to 44.92 percent in July.

Sonmez noted that the increase is mainly related to the fluctuation in the foreign exchange rates and is likely to continue in the coming months, creating high stress on consumers prices.

According to press reports, rising inflation rates pressured the central bank to raise interest rates.

However, Turkish President Recep Tayyip Erdogan does not favor interest rate hikes, and the Monetary Policy Committee of the Central Bank kept the policy rate, a one-week repo auction rate, constant at 19 percent in July.

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