Turkish retail sales climb at fastest pace in three months

Turkey’s retail sales rose at the fastest pace in three months in October even after the central bank started to increase interest rates to defend the lira and rein in inflation.

Sales volume by Turkish shops at constant prices increased by an annual 12 percent, climbing at the second-highest pace this year, the Turkish Statistical Institute said on Monday. The increase was led by purchases of food, alcohol and tobacco.

On a month-on-month basis, sales rose by 4.2 percent, also the highest increase since July. They expanded by 3.1 percent in September.

Turkey’s central bank raised its benchmark interest rate to 10.25 percent in September from 8.25 percent. It hiked the rate again in November to 15 percent.

Annual inflation in the country accelerated to 14 percent last month from 11.9 percent in October.