While Germany and the EU are already worried about inflation rates of around eight percent, Turkey has been struggling with rapidly rising prices for some time. Inflation is now at a new record – and could be even higher.
Inflation in Turkey continues to break records as consumer prices rose 73.5 percent year-on-year in May, hitting the highest level in almost 24 years, according to figures from the Bureau of Statistics.
Inflation is being fueled significantly by high energy and food costs, which are also being driven by the fall in value of the Turkish lira. The situation is aggravated by the Russian war of aggression against Ukraine; Russia and Ukraine are important for Turkey for importing energy sources and grain.
High consumer prices have become one of the most important issues in Turkish politics in recent months. Despite rampant inflation in the country, the central bank recently left the key interest rate unchanged again. Turkish President Recep Tayyip Erdogan is an avowed opponent of high interest rates, which prevailing opinion is a tried and tested means of combating inflation.
Since the beginning of 2017, Turkey has experienced double-digit inflation rates almost continuously. A year before the presidential elections planned for June 2023, critics from the ranks of the opposition and some economists even accuse the national statistical office of glossing over the extent of inflation.
Independent Turkish economists from the Inflation Research Group said inflation actually reached 160.76 percent year-on-year in May – more than double the official rate.
