Turkey’s rate of inflation surged to nearly 25 per cent last month as the crisis engulfing the country’s currency hit consumers with huge increases in prices.
Consumer prices grew 24.52 per cent compared to September last year, as President Tayyip Erdogan and US President Donald Trump refused to back down over a row about the imprisonment of an American pastor.
Turkey’s lira has lost 40 per cent of its value so far this year amid the dispute, and now shoppers are feeling the effect, according to data from the Turkish Statistical Institute.
Prices grew by 17.9 per cent in August, worsening by 6.3 per cent last month, the institute’s figures show.
The lira fell by over one per cent to 6.05 against the dollar following the news, with a Reuters poll showing that economists were only expecting month-to-month inflation to grow by 3.6 per cent for September.
Erdogan last week attacked the US for its support of Pastor Andrew Brunson, who he accused of having “dark links” to terrorism. Brunson is set to stand trial in Turkey despite US demands for his release.
Yesterday Turkey prosecutors ordered 417 people to be detained over a money laundering investigation into the transfer of 2.5bn lira (£323m) worth of foreign currency into bank accounts abroad.