According to the latest data from the Turkish Statistical Office, the country’s annual inflation rate in July was 79.6%, the highest in 24 years. Rising transportation costs, food, and non-alcoholic beverages were some of the product categories that contributed to the overall increase.
The biggest rise was in transportation costs
The latest data from the Turkish Statistical Institute (TSI)showed that consumer inflation in Turkey jumped to 79.60% in July, the highest in the past 24 years, and 2.37% for the month. Transportation costs, which rose 119.1%, were one of four major product groups whose prices rose faster than the Consumer Price Index (CPI), according to the data.
The other three product groups whose inflation rates rose faster than 79.6% were food and non-alcoholic beverages at 94.65%, furniture and household equipment (88.35%), and alcoholic beverages and tobacco (82.66 ).
However, according to TSI, while the Transportation group is noted as the group with the largest monthly increase, it is the only one of the major groups with a negative monthly increase of approximately -0.85%, according to the data. On the other hand, “Health” had the highest rate at 6.98%, followed by “Alcoholic Beverages/Tobacco” at 6.85%.
Price inflation accelerates in 2022
Turkey’s inflation rate has been on an upward trend since 2021. This is supported by the latest TSI data, which shows that prices have risen by an average of 45.72% since December 2021. At the same point last year, prices rose 10.41% and 6.37% the year before.
Meanwhile, according to a Reuters report, Turkey’s currency is depreciating rapidly. On the other hand, Reuters reports
that the rapid depreciation of Turkey’s own currency and the ongoing war between Ukraine and Russia are among the main reasons for the rise in prices.Despite rising to levels seen in 1998, the Turkish central bank has forecast that by the end of 2022, prices will rise to 42.8 %, it has reportedly indicated that it expects the rate to decline to 42.8% by the end of 2022.
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