The Turkish lira is dropping to a low level … and inflation is approaching 12 percent


The Turkish lira fell during Thursday’s trading to low levels against the dollar, in light of concerns about the risks of the outbreak of the second wave of the Corona epidemic.

Turkish Health Minister Fakhruddin Kujah said that Turkey is witnessing the second peak of the Corona outbreak due to “neglect” in weddings and social gatherings, amid a rapid increase in the number of daily injuries and deaths.

The Turkish lira fell to an all-time low on Thursday, while official data showed that annual inflation rose in August near 12 percent.

The currency, which amounted to 7,438 against the dollar, kept import prices high and erased the impact of any downward price pressures resulting from the general isolation measures imposed earlier this year.

Adding to the risks for Turkey is that new COVID-19 infections have soared in recent weeks.

The Turkish currency has declined about 20 percent from the beginning of this year, but it has stabilized in recent weeks. The devaluation of the currency increased inflation through imports, which in turn led to a high current account deficit.

The lira was down 0.6 percent to 7,434 against the dollar by 0935 GMT.

On Thursday, official data showed that the consumer price index rose in Turkey during the month of August.

The inflation rate rose, according to the Turkish Statistics Authority, by 0.86 percent, bringing inflation to 11.77 percent on an annual basis.

The authority said that the inflation rate during last August amounted to 11.77 on an annual basis, while the producer price index reached 11.53 percent.

It indicated that the producer price index increased during last August, by 2.35 percent.

It stated that the consumer price index rose by 7.27 percent on a monthly basis, compared with December 2019, and by 11.77 percent compared to August of last year.

The economic circles in Turkey had expected an increase in the consumer price index last August, by 0.96 percent.


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