Turkey: New dip for pound – Low – record against the dollar

The Turkish currency fell to a new record low of 8.4540 pounds per dollar following the release of Turkish Statistics Service data on rising inflation in October, keeping pressure on the Erdogan government for tight monetary policy. The Turkish lira has plunged 30% against the US currency this year, the biggest drop among emerging markets, boosting inflation through hard-priced imports. Inflation in Turkey rose to 11.89% year-on-year in October from 11.75% in September, according to data released today – higher than the official target by a range of about 5% .Turkish central bank unexpectedly kept interest rates stable at 10.25% in October, below what moved inflation all year. Double-digit inflation and negative real interest rates are partly due to the Turkish lira falling to record lows. Consumer prices rose 2.13% in October on a monthly basis, according to the Turkish Statistics Service. The biggest increases were in the prices of clothes and shoes, which jumped 6.81% during the month, with the prices of food and non-alcoholic beverages climbing 3.03%. The producer price index rose 3.55% on a monthly basis in October and by 18.20% on an annual basis. Prices remained high due to strong credit expansion and rising food prices, leading the central bank to revise the past week its forecast for the end of the year at 12.1% from 8.9%. Central Bank Governor Murat Uzal said last week that inflation is expected to remain high until the end of the year. in the

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