Inflation in Turkey is increasingly out of control, with the inflation rate jumping above the 30-per-cent mark in December to 36.08 per cent year-on-year, the highest level in about two decades, the Turkish Statistical Office said in Ankara on Monday.

Analysts were surprised by the strength of the price increase. They had expected around 27 per cent.

The rate has more than doubled since the summer. The rise in the cost of living was recently also driven by higher food prices.

From November to December alone, the inflation rate was 13.6 per cent.

Producer prices even increased by 79.89 per cent year-on-year in December. The prices that producers charge for their goods are likely to be passed on to consumer prices, at least in part, with some delay.

The rapid decline in the Turkish lira exchange rate, which goes hand in hand with inflation, makes imports of goods into the country more expensive.

In addition, commodity prices on the world market are comparatively high. This is one of the reasons why the country is in a difficult economic situation, which is reflected in high unemployment.

The situation has been aggravated for months by the Turkish central bank, which, under pressure from Turkish President Recep Tayyip Erdogan, has recently lowered the key interest rate further and further despite the high inflation.

Central bankers usually fight against galloping inflation with higher key interest rates.

On the foreign exchange market, the Turkish lira came under pressure on Monday. Compared to the dollar and the euro, the exchange rate fell by more than 2 per cent in the morning.

dpa