Ankara’s struggle as it moves towards more conventional policies is highlighted by an 8.5% increase in prices in August.

The new finance minister and central bank chief implement a policy U-turn, including interest rate hikes to limit domestic consumption.

The falling lira and tax hikes keep inflationary pressure high.

After years of dramatic rate decreases, monetary tightening should lower inflation by mid-2024.

The lira has fallen 26% since new Governor Hafize Gaye Erkan raised rates by 900 basis points.