Turkey's inflation hits 61 per cent; climbs to new 20-year high

The Turkish Statistical Institute said consumer prices rose by 5.46 per cent in March compared with the previous month. Yearly inflation was up from 54.44 per cent in February.

Published: 04th April 2022 03:18 PM  |   Last Updated: 04th April 2022 03:18 PM   |  A+A-

A vendor sells Turkish flags with the portrait of Mustafa Kemal Ataturk, founder of the modern Turkey, in a street market in Istanbul

A vendor sells Turkish flags with the portrait of Mustafa Kemal Ataturk, founder of the modern Turkey, in a street market in Istanbul (Photo | AP)

By PTI

ISTANBUL: Yearly inflation in Turkey hit 61.14 per cent on Monday, climbing to a new 20-year high and deepening a cost of living crisis for many households.

The Turkish Statistical Institute said consumer prices rose by 5.46 per cent in March compared with the previous month. Yearly inflation was up from 54.44 per cent in February.

The highest yearly price increase was in the transportation sector, at 99.12 per cent, while the increase in food prices was 70.33 per cent, according to the data. It was the biggest year-on-year increase since March 2002. Rising prices are part of an economic crisis exacerbated by the COVID-19 pandemic.

Meanwhile, Russia's invasion of Ukraine has seen a surge in gas, oil and grain prices.

Turkey's runaway inflation also follows a series of interest rate cuts late last year, in line with President Recep Tayyip Erdogan's opposition to high borrowing costs in a bid to boost growth, investment and exports.

In contrast to established economic thinking, the president insists that high rates cause inflation.

The central bank cut rates by five percentage points between September and December but they have remained unchanged at 14 per cent this year. The lira, which lost 44 per cent of its value against the US dollar last year, plunged to a record high of 18.41 against the greenback in December.

The currency's performance has fuelled inflation in the import-reliant Turkish economy.

In an effort to soften the blow on households, the government has implemented tax cuts on basic goods and has adjusted electricity tariffs.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp