(Bloomberg) -- Turkey increased natural gas prices for businesses and electricity producers, adding to inflationary pressures that had forced the central bank to raise interest rates sharply.
The announcement by state-run gas company Botas late Saturday includes major industries and small and medium-sized enterprises. It follows a 20% increase in electricity prices for industrial consumers that comes into effect Sunday.
The Turkish central bank has raised its policy rate by 2,150 basis points in four consecutive meetings to 30%. Annual inflation accelerated to 59% in August, with a month-on-month increase of 9.1%, driven by lira depreciation and tax hikes.
Bloomberg Economics forecasts inflation to accelerate 61% in September on year, with the potential to reach 70% in the near future.
Turkey Inflation to Print Back Above 60% - En Route to 70%
Istanbul city annual retail inflation rose 73% in September, compared with 74% in August, according to data published by the Istanbul Chamber of Commerce on Sunday. Month-on-month inflation was 5.5% in Istanbul, compared with a 8.8% increase in August. Clothing, education and furniture led price increases in September.
The Turkish Statistics Agency is scheduled to release September’s inflation data on Oct. 3. Annual inflation is expected to reach 62%, according to a Bloomberg survey of 18 economists.
(Updates with Istanbul retail inflation data in paragraph five.)
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