Data on Friday showed that inflation in Turkey rose more than expected to 21.31% on an annual basis in last November, its highest level in 3 years, exacerbating the decline in real yields after the unprecedented decline of the lira to its lowest levels ever.

The Turkish Statistical Institute said consumer prices rose 3.3% on a monthly basis, compared to expectations in a Reuters poll that had indicated a reading of 3% and expectations of an annual reading of 20.7%.

According to the data, the consumer price index increased by 19.82% in November 2021 compared to December 2020, and by 21.31% compared to November 2020.

The data showed that the producer price index rose about 10% on a monthly basis in last November, recording an annual increase of 54.62 percent.

And the international credit rating agency, Fitch, expected that inflation in Turkey would rise to 25% by the end of 2021.

Fitch raises growth forecast for the Turkish economy

Fitch revised Turkey's outlook to negative, affirming its rating at (bb-) and lowered its outlook on Turkey's long-term debt default to negative from stable.

Fitch said that adjusting Turkey's outlook reflects the central bank's policy of monetary easing before its time, noting that its assessment reflects weak monetary policy credibility, high inflation, lack of external liquidity and geopolitical risks.

However, the agency raised its forecast for Turkey's economic growth this year from 9.2 to 10.5%, and raised its forecast for growth next year from 3.5 to 3.6%.

According to a statement issued on Thursday by the International Agency, Turkey's economic growth is strong compared to its peers, but the country's per capita income has been declining since 2013 in dollar terms.

export strength

On Thursday, Turkish President Recep Tayyip Erdogan announced that his country's exports amounted to $221 billion on an annual basis (within a year).

Erdogan published foreign trade data through his accounts on social networks, and it showed an increase in exports last November by 33.44% compared to the same month last year.

The Turkish president said that our exports reached $221 billion on an annual basis, and we will work harder, produce more and achieve more growth.

According to the publication, Turkey recorded the highest monthly export earnings in its history during last November, at $21 billion and 468 million.

Exports during the first 11 months of this year amounted to about 203 billion and 141 million dollars.

Germany topped the list of countries importing the most from Turkey with about one billion and 751 million dollars, followed by Britain with one billion and 478 million dollars, and then the United States with one billion and 365 million dollars.

Trade in Turkish lira recorded an increase of 53.07 percent, while trade exchange was conducted in Turkish lira with 188 countries.

The data also showed an increase in the volume of foreign trade by 29.63%, to reach 48 billion and 263 million dollars.