Cigarette Price Hike To Add Up To 1 pct To Turkish Inflation

Source from:  Reuters 04/09/2019

A 20 percent price increase on cigarettes is expected to add up to 1 percentage point to Turkey’s inflation, economists say, as Ankara continues to face price instability.

In the wake of last year’s currency crisis which saw the lira lose nearly 30 percent of its value against the dollar, Turkey’s inflation surged due to heightened import prices.

Inflation topped 25 percent in October, hitting a 15-year peak, and has eased to just below 20 percent in March.

Ankara increased the special consumption tax on cigarettes in January to 67 percent from 63 percent, while lowering the minimum fixed tax to zero.