Istanbul: The Turkish lira fell amid concerns policy makers are not acting quickly enough to put a lid on runaway inflation.

The currency slipped as much as 2.6% as data showed consumer prices rose 17.9% in August from a year earlier. That’s the most since 2003 and more than three times the central bank’s official target of 5%. The median forecast in a Bloomberg survey was for an increase to 17.6%.

While the central bank has raised interest rates by 700 basis points this year, that hasn’t been enough to shield the lira from a rout that seen it shed more than 40% of its value against the dollar.

The latest bout of weakness—fuelled by an escalating spat with the US and a resurgent greenback is pushing up import costs and piling pressure on companies that have borrowed heavily in foreign currency.

The central bank next meets to set rates on 13 September and started to drive up the cost of funding by tightening liquidity last month even as it unexpectedly kept its benchmark rate unchanged at its previous policy meeting in July.