Turkey’s annual inflation rate topped 9.3 percent in July, up from 9.16 percent in June.
The Turkish central bank said that volatility in food prices was behind the rise – and a key driver of the bank’s failure to meet its year-end inflation target of 5 percent.
Euronews spoke to economist Cemil Ertem about the strengths and weaknesses of the Turkish economy: “When we compare Turkey with the EU, and with the rest of the world, we can say that Turkey is in relatively good shape.”
“However, private sector debts, the current account deficit, and the deviation from the central bank’s inflation rate goal are concerns for many analysts,” Ertem continued.
Turkey’s prime minister Recep Tayyip Erdogan, who is running for President in this weekend’s election, has repeatedly called for interest rate cuts, arguing that they could curb inflation.
The central bank defied Erdogan in January, brining in a huge rate hike to bolster the country’s tumbling currency, the lira.