Credit Boom and Weaker Exchange Rate Cause Turkey’s Inflation to Rise in November 2020: Central Bank

The delayed effects of a credit boom that increased demand for consumer goods and services, together with a fall in the TRY against the USD, led to Turkey’s consumer price inflation rising to 14.0% year-on-year (YoY) in November 2020, from 11.9% YoY in October 2020. Data from the Turkish Statistical Institute marked November’s inflation rate as the highest level recorded over the last fifteen months.

According to the Central Bank, food prices rose 21% YoY in November 2020, pushing inflation up. In addition, a 25% decline in value of the TRY during 2020 made the import of food and raw materials more expensive.

Prices of goods and services came under further pressure due...