Treasury and Finance Minister Mehmet Şimşek said inflation would today be at least 7 points lower if not for the war; annual inflation was 31.5% in August. Central Bank (TCMB) Governor Fatih Karahan said recurring energy shocks could complicate the fight against inflation.
Şimşek said inflation was more persistent than expected due to strong backward indexation in rents, education and wages, and that exchange rate pass-through stood at 30-40 percent. While annual inflation fell to 31.5 percent in August, the monthly increase was 1.84 percent. Karahan warned that recurring energy shocks could make it harder to control price increases.
