Istanbul: annual inflation in Turkey The rate climbed to a new 20-year high of 61.14 percent on Monday and deepened the livelihood crisis for many families.
Turkish Statistical Institute It said consumer prices increased by 5.46 per cent in March compared to the previous month. Annual inflation was up from 54.44 per cent in February.
According to the data, the highest annual price increase was in the transport sector at 99.12 per cent, while the increase in food prices was 70.33 per cent. This was the biggest year-on-year increase since March 2002.
Rising prices are part of the economic crisis triggered by the COVID-19 pandemic. Meanwhile, Russia’s invasion of Ukraine has seen gas, oil and grain prices soar.
Turkey’s runaway inflation also follows a series of interest rate cuts late last year in line with the president Risp Tayip ErdoganOpposing high borrowing costs to promote growth, investment and exports.
Contrary to established economic thinking, the president insists that higher rates cause inflation.
The central bank cut rates by five per cent between September and December but this year they remained unchanged at 14 per cent.
The lira, which lost 44 percent of its value against the US dollar last year, fell to a record high of 18.41 against the greenback in December. The currency’s performance has fueled inflation in the import-dependent Turkish economy.
In an effort to reduce the blow to households, the government has implemented tax cuts on basic goods and adjusted electricity rates.
Turkish Statistical Institute It said consumer prices increased by 5.46 per cent in March compared to the previous month. Annual inflation was up from 54.44 per cent in February.
According to the data, the highest annual price increase was in the transport sector at 99.12 per cent, while the increase in food prices was 70.33 per cent. This was the biggest year-on-year increase since March 2002.
Rising prices are part of the economic crisis triggered by the COVID-19 pandemic. Meanwhile, Russia’s invasion of Ukraine has seen gas, oil and grain prices soar.
Turkey’s runaway inflation also follows a series of interest rate cuts late last year in line with the president Risp Tayip ErdoganOpposing high borrowing costs to promote growth, investment and exports.
Contrary to established economic thinking, the president insists that higher rates cause inflation.
The central bank cut rates by five per cent between September and December but this year they remained unchanged at 14 per cent.
The lira, which lost 44 percent of its value against the US dollar last year, fell to a record high of 18.41 against the greenback in December. The currency’s performance has fueled inflation in the import-dependent Turkish economy.
In an effort to reduce the blow to households, the government has implemented tax cuts on basic goods and adjusted electricity rates.