Turkey’s inflation accelerated in November after the lira fell against the dollar and the lagged effects of a credit boom stoked demand for consumer goods, the central bank said on Friday.
The consumer price inflation rate in Turkey rose to 14 percent in November, the highest level in 15 months, from 11.9 percent in October, Turkish Statistical Institute figures showed on Thursday. The central bank publishes an assessment of the data on the day after their release each month.
Food prices which rose 21 percent annually in November, led inflation higher due to the cumulative exchange rate impact, supply-side factors related to commodity prices, and seasonal effects, the central bank said.
The Turkish lira has lost about 25 percent of its value this year, rendering imports goods such as food and raw materials more expensive. The government has also engineered a borrowing boom this year through cheap loans from state-run banks to help stoke economic activity, further pressuring the price of goods and services.
The lira’s losses also impacted durable goods, the price of which also rose “due to the delayed effects of strong credit impulse”, the bank said.
The central bank has raised its benchmark interest rate to 15 percent from 8.25 percent since September to help rein in inflation and defend the lira. It next meets on interest rates on Dec. 24.