Inflation in Turkey has soared to its highest level since 2003. In August, the annual rate of consumer price inflation had reached around 18% but in September it was almost 25%. Food prices rose by 6.4% in September alone.
Turkish consumers have been facing severe double-digit inflation for almost two years now, largely thanks to the currency crisis, which has sent the prices of imported goods sky-high.
A failed coup against President Recep Tayyip Erdogan, his authoritarian tendencies and his criticism of the central bank which he insists should keep interest rates low have all caused investors to lose confidence in the country's political and economic stability. The lira has lost half its value against the dollar since 2016.
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Viewpoint
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Gillian Tett, Financial Times
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