Connect with us

Politics

Turkish inflation accelerates for sixth consecutive month

Avatar

Published

on


Turkish inflation accelerated for the sixth consecutive month in March, with weak lira pushing up the cost of imports, making it harder for the country’s new central bank governor to meet President Recep Tayyip Erdogan’s wish to ease monetary policy.

Consumer prices rose 16.19% year on year, in line with the expectations of economists polled by Reuters. The month-over-month increase was 1.08%, with transportation and white goods leading the rise, the national statistics agency said on Monday.

Turkey’s inflation rate has remained in double digits for much of the past three years, leaving central bank governor Sahap Kavcioglu with a dilemma.

Kavcioglu was appointed last month by Erdogan, who often demanded lower borrowing costs to boost economic growth. But lower rates risk fueling inflation and threaten to undermine the value of the lira, analysts say.

“The new depreciating pressure on the local currency highlights the need for the central bank to maintain tight monetary policy,” Enver Erkan, economist at Tera Securities, wrote in a research note after the release of data on the inflation.

“[High] interest is the most useful instrument in terms of price stability, even if it has a slowing effect on the real economy, ”he said.

The numbers make it unlikely that Kavcioglu will cut interest rates at upcoming Monetary Policy Committee meetings this month and in May, and he could even signal that policy will remain tight, Erkan said.

The bank’s next rate-setting meeting will take place on April 15.

The lira has fallen 13% against the dollar since Erdogan sacked Kavcioglu’s hawkish predecessor Naci Agbal in the middle of the night last month, two days after raising rates to 19% in a bid to contain inflation and support the read. .

The Turkish currency has lost more than a fifth of its value against the US dollar over the past year. This has driven up the cost of imports, including intermediate goods that the country’s manufacturers need.

Producer prices jumped 4.13 percent last month and are up 31.2 percent year-over-year, according to the statistics bureau. This suggests that the headline inflation rate will continue to rise as higher production costs are passed on to consumers.

Rising oil prices are also a factor, as Turkey imports almost all of the energy it consumes.

Kavcioglu, an academic and newspaper columnist, is Turkey’s fourth central bank chief in less than two years. He supported Erdogan’s view that high interest promotes inflation, contrary to mainstream economic theory.

However, Kavcioglu has indicated that he will not immediately reverse his predecessor’s policies and has pledged to meet the central bank’s 5% year-end CPI target.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]