Problems with a strong rise in prices in Turkey, for the first time in almost a year, made the real key rate of the Central Bank negative, threatened the hopes of the country’s President Erdogan, who is in favor of easing monetary policy.

Inflation in Turkey rose from 18.95 percent per annum in July to 19.25 percent in August. Experts polled by Bloomberg had expected a drop to 18.75 percent. Meanwhile, a third of economists predicted that inflation would be supported by rising prices for raw materials and food. On the publication of data on inflation the Turkish lira exchange rate fell slightly.

The unexpected price hike caused the inflation-adjusted real key rate in Turkey to fall to -0.25 percent. This has become an additional problem for the head of the central bank Shahap Kavcioglu. Previously, he promised to keep the key rate above inflation, but has faced Erdogan’s calls for a rate cut this month.