Turkey, inflation

Inflation in Turkey reaches 48.7%, the highest in two decades

Prices have doubled in the last year in Turkey on transportation, food, and household equipment.

Year-on-year inflation in Turkey reached 48.7% in January, which represents the highest rise in prices since April 2002 (almost two decades ago) in the Eurasian country, according to data published today by the Turkish Statistical Institute (TÜİK).

The rise in the CPI in January, 48.7% compared to the same month of last year, was led by transport, where costs shot up 68.89% compared to a year ago; it was followed by the price of food and non-alcoholic beverages (55.61%), and furniture and household equipment (54.53%). The smallest increases occurred in communications (10.76%), education (18.67%) and clothing and footwear (25.32%).

Compared to the previous month (December 2021), the monthly increase in prices was 11.10%, highlighting the increase in alcoholic beverages and tobacco (21.9%), while on the opposite side the cost of clothing and footwear experienced negative inflation, with a drop in prices of 0.24% in relation to the previous month.

The Central Bank of Turkey (TCMB) raised last week its inflation forecast for the end of 2022, which now are 23.2%, double the previous estimate of 11.8% made by the TCMB itself in its report from October last year. The Central Bank, which has stressed that it will continue to support the stability of the Turkish lira, also anticipates that inflation will continue to rise until it reaches its maximum in May 2022, and then drops drastically from the third quarter of the year.