supermarket, prices

Inflation continues to grow and now exceeds 16%

Prices in Turkey continue to grow: in March inflation was around 16.2%, marking its highest in the last two years.

Inflation in Turkey continues unstoppable: prices in the Eurasian country grew by 16.19% last March compared to the same month last year, according to the latest data published this Monday by the Turkish Statistical Institute (TÜİK) , a figure even higher than that registered in February, when prices grew by more than 15%.

According to the report released today by the official statistical body of the Turkish government, the Consumer Price Index (CPI) grew by 1.08% between February and March, and forecasts suggest that it will continue to increase at least until April. For its part, the Producer Price Index (PPI) suffered a rise of 4.13% in March compared to the previous month, and 31.2% when compared to March 2020.

Şahap Kavcıoğlu, new governor of the Turkish Central Bank (TCMB) after the sudden dismissal by the Turkish president of the previous one shortly after announcing a new record rise in interest rates, said last week that he will maintain a strict monetary policy and rates above inflation while the price escalation continues, in an attempt to quell criticism and fears in the markets after the dismissal of his predecessor.

The figure known today, slightly below the forecasts of economists, marks a new inflation record for almost 2 years, and will foreseeably increase the pressure on the Central Bank of Turkey to continue with its policy of high interest rates, despite President Tayyip Erdoğan maintaining that they harm the economy and are the ones that contribute to raising inflation.

This inflation figure also represents a new setback for the forecasts of the government, which in its latest economic program predicted that inflation would be around 8% by the end of 2021, while the Central Bank’s forecast remains at 9.4% by the end of this year.