During the past month, the rate of inflation in Turkey has surged to almost 25 per cent as the crisis that is engulfing the official currency of the country affected the consumers with huge rise in prices.
The consumer prices increased by 24.52 percent as compared to September of the previous year as Tayyip Erdogan, the President of Turkey, and Donald Trump, the President of the United States of America, both refused to back down over a dispute regarding the imprisonment of an American pastor.
The monthly rate was at 6.3 percent. It was driven by an across-the-board spike that was provoked by the meltdown of the lira. Berat Albayrak, the Treasury and Finance Minister, blamed the hoarders and speculators for the spike. He also predicted that inflation would stop quickening in October.
So far, the Turkish lira has lost approximately 40 percent of its value this year amid the said dispute, and according to data that were released by the Turkish Statistical Institute shoppers are already feeling the effect.
In August, Prices increased by 17.9 percent. The figures released by the institute reveal that it further worsened by 6.3 percent last September.
The lira dropped by more than one percent to 6.05 against the dollar after the release of the news, with a Reuters poll revealing that economists were only anticipating month-to-month inflation to increase by 3.6 percent for September.
Last week, Erdogan attacked the United States of America for its support of Pastor Andrew Brunson. He accused the pastor of having “dark links” to terrorism. Brunson is scheduled to stand in trial in Turkey despite the demands of the United States for his release.
Yesterday, prosecutors in Turkey ordered 417 people to be detained because of a money laundering investigation into the transfer of 2.5 billion lira (£323 million) worth of foreign currency into various bank accounts spread abroad.