ANKARA: Turkey’s inflation in November hit its highest annual rate in 14 years at nearly 13 percent, according to official data released Monday.
Consumer prices rose 12.98 percent last month from the same period in 2016, the state statistics agency said, the highest annual rate recorded since December 2003.
Inflation had been 11.9 percent in October.
Monthly inflation meanwhile was up 1.49 percent in November from October, with transport, clothing and food showing strong rises.
The rise was sharper than analysts had predicted, and comes after the Turkish lira’s value against the US dollar declined by 13.5 percent since September.
Economists said that annual inflation would probably come down from December onwards but said it was still likely to remain in double digits.
Gokce Celik, chief economist at QNB Finansbank, said year-on-year inflation “is likely to spend the first half of the year (2018) above 10.5 percent.”
The Turkish central bank will hold its regular monetary policy committee meeting on Dec. 14 to decide on interest rates.
Liam Carson, Emerging Europe economist at London-based Capital Economics, said in a note the rise in inflation was “likely to prompt a rate hike next week.”
Economists agreed the bank needed to make a meaningful hike to interest rates but Inan Demir of Nomura International said this was “unlikely.”
“A large hike of several hundred basis points looks unlikely unless renewed (Turkish lira) depreciation pressures force the bank’s hand,” Demir said in a note.
The lira hit a record low of 3.97 against the greenback last month.
The Turkish currency was at 3.92 at 11.00 a.m. GMT on Monday.
Since the New York trial of a Turkish banker accused of violating US sanctions against Iran started last week, the lira has traded at more than 3.90 to the US dollar.
Turkish-Iranian gold trader Reza Zarrab, the prosecution’s star witness, admitted to being involved in a multibillion-dollar gold-for-oil scheme.
He also implicated President Recep Tayyip Erdogan in the scheme allegedly designed to subvert sanctions, and admitted to bribing a former Turkish economy minister.
A guilty verdict in the trial that Ankara calls a “plot” against Turkey could see one or more Turkish banks fined, a move analysts say would hurt the country’s economy.
Turkey inflation hits highest level since 2003
Turkey inflation hits highest level since 2003
Industry leaders highlight Riyadh’s Metro, infrastructure as investment catalysts
RIYADH: Saudi Arabia’s capital, Riyadh, is experiencing a transformative phase in its real estate sector, with the construction market projected to reach approximately $100 billion in 2025, accompanied by an anticipated annual growth rate of 5.4 percent through 2029.
The Kingdom is simultaneously advancing its data center capacity at an accelerated pace, with an impressive 2.7 GW currently in the pipeline. This expansion underscores the critical role of strategic land and power planning in establishing national infrastructure as a cornerstone of economic growth.
These insights were shared by leading industry experts during JLL’s recent client event in Riyadh, which focused on the city’s macroeconomic landscape and emerging trends across office, residential, retail, hospitality, and pioneering sectors, including AI infrastructure and Transit-Oriented Development.
Saud Al-Sulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, commented: “Riyadh is positioned at the forefront of Saudi Arabia’s Vision 2030, offering unparalleled opportunities for both investors and developers. National priorities are continuously recalibrated to ensure strategic alignment of projects and foster deeper collaboration with the private sector.”
He added: “Recent regulatory developments, including the introduction of the White Land Tax and the rent freeze, are designed to stabilize the market and are expected to drive renewed focus on delivering premium-quality assets. This dynamic environment, coupled with evolving construction cost considerations in select segments, is fundamentally reshaping the market landscape while accelerating progress toward our national objectives.”
The event further underscored the transformative impact of infrastructure initiatives. Mireille Azzam Vidjen, Head of Consulting for the Middle East and Africa at JLL, highlighted Riyadh’s transit revolution. She detailed the Riyadh Metro, a $22.5 billion investment encompassing 176 kilometers, six lines, and 84 stations, providing extensive geographic coverage, with a depth of 9.8 km per 100 sq. km. This strategic development generates significant TOD opportunities, with properties in proximity potentially commanding a 20-30 percent premium. JLL emphasized the importance of implementing climate-responsive last-mile solutions to enhance mobility and accessibility, particularly given Riyadh’s extreme temperatures.
Gaurav Mathur, Head of Data Centers at JLL, emphasized the rapid expansion of the Kingdom’s AI infrastructure, signaling a critical area for technological investment and innovation.
Focusing on the construction sector, Maroun Deeb, Head of Projects and Development Services, KSA at JLL, explained that the industry is actively navigating complexities such as skilled labor availability, material costs, and supply chain dynamics.
He highlighted the adoption of Building Information Modeling as a key driver for enhancing operational efficiency and project delivery.
