Turkey’s government keeps testing the resilience of the country's economy by letting inflation run uncontrolled. Apparently, there are no limits for accelerated prices in this country. Recently, annual inflation in Turkey has easily climbed above the level of 80%. According to the official data, Turkey’s consumer prices surged to 80.21% this August compared to the previous year. Inflation in the country has been galloping for quite some time already. This summer, it accelerated the pace of growth: from 73% (73.5%) in May to 78.62% and 79.6% in June and July respectively. On a monthly basis, the consumer price index rose by 1.46% in August alone. Meanwhile, the Central Bank of the Republic of Turkey continues to follow the order of the country's President, Recep Tayyip Erdogan, and keeps cutting the interest rate. The regulator has recently lowered the rate to 13% from 14%. Markets took this as an indication that the central bank is not going to prioritize the fight against inflation. Prices began to increase last autumn which coincided with a sharp drop in the Turkish lira. A fall came after the central bank slashed the rate by 500 basis points to 14% as part of an economic model proposed by Erdogan.
