Inflation jumped 17.9 percent year-on-year in August, official data showed, marking its highest level since late 2003.
Consumer prices rose 17.9 percent in August from the same month in the previous year up from 15.85 percent in July, according to the Turkish statistics office (TUIK).
The highest annual rise in the month was in the cost of transport, up 27.13 percent, while prices for food and non-alcoholic drinks were up 19.75 percent, TUIK said.
The highest monthly increase was 5.85 percent in miscellaneous goods and services, followed by furnishing and household equipment by 4.56 percent and transportation by 4.45 percent.
Producer prices leaped 32.13 percent, a separate TÜİK statement showed.
"Recent developments regarding the inflation outlook indicate significant risks to price stability. The central bank will take the necessary actions to support price stability," the bank said shortly after the release of the inflation data.
"(The) monetary stance will be adjusted at the September monetary policy committee meeting in view of the latest developments."
The lira was worth 6.6 against the US dollar, a loss of nearly 1.5 percent on the day after 0930 GMT, rallying slightly after the central bank's indication.