Turkey, inflation, prices

More inflation: prices soared 70% in April in Turkey

The increase in the CPI in Turkey continues to break records: inflation in transport reaches 106%, and the rise in food prices exceeds 89%.

Inflation is still out of control in Turkey, where prices shot up almost 70% during the past month of April, according to the latest official data presented today by the Turkish Statistical Institute (TÜİK), which mark a new maximum record of the last 20 years of escalating CPI, run amok by the war in Ukraine and rising energy costs and imports of raw materials and commodities.

According to the report presented today by TÜİK, the Consumer Price Index (CPI) increased by 69.7% in April compared to the same month last year, which represents the largest increase since 2002. The data, which comes after a 61.1% rise in prices was already registered in March, also exceeds the forecasts of analysts, who had estimated that inflation in April would be around 68% in the Eurasian country.

The year-on-year rise in prices in April was led by the transport sector -particularly affected by the rise in energy prices- with an increase in prices of no less than 105.9%; it was followed in second place and as usual by the group of food and non-alcoholic beverages, which experienced an increase in costs in relation to a year ago of 89.1%.

In relation to the previous month (March), the CPI increased by 7.25% in Turkey, according to statistical data, a figure that also exceeds market expectations, which predicted that month-on-month inflation would grow by around 6%. Compared to March, the largest price increases in April were experienced by food and non-alcoholic beverages (13.38%), while housing prices also rose by 7.43%.

Despite these data, the Turkish government maintains that the current inflationary trend is temporary; Turkish President Tayyip Erdoğan himself insisted last week that the CPI will begin to decline in May to take a “more favorable course” at the end of the year; however, inflation has so far continued to break records month after month in Turkey, even despite tax cuts on basic goods and government subsidies on electricity bills to stem rising prices.