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HomeNewsTurkey’s inflation hits 16-month high of 68.5%

Turkey’s inflation hits 16-month high of 68.5%

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Ankara, April 3 – Turkey is facing increasingly serious inflation. In March, prices skyrocketed by 68.5%, the highest in the last 16 months. Although analysts predicted an even worse outcome, this is still an alarming development.

Key macroeconomic indicators of Turkey

IndicatorValueDate
GDP (nominal)851.5 billion USD2023
GDP (real)3.9%2023
Inflation rate68.5%March 2024
Unemployment13.1%December 2023
Interest rate14%March 2024
Public debt34.5% of GDP2023
Source: International Monetary Fund (IMF)

Restaurant and transportation prices are rising by tens of percent

The prices of services in restaurants, hotels, and cafes have risen the most, with people paying almost 95% more for the same thing than a year ago. Transportation prices are also rising sharply, by almost 80%. Food has also become significantly more expensive.

Independent estimates of inflation in Turkey are even higher

While the Turkish Statistical Institute puts inflation at 68.5%, the ENAG group of independent economists claims that prices are actually rising much faster, by as much as 125% year-on-year. This means that official statistics may underestimate the situation.

Inflation is making life difficult for Turks

High inflation is significantly reducing the purchasing power of the population and worsening their standard of living. People can buy less with their money and confidence in the Turkish lira is declining.

Central bank so far unsuccessful

The Turkish central bank is trying to combat inflation by raising interest rates, but so far without any significant effect.

It will be interesting to see how the situation in Turkey develops

Will the price increase in Turkey stop or will it go even higher? We do not yet know the answer to this question. What is certain is that the situation in the country is serious.


Additional information:

  • The Turkish central bank expects inflation to average 44% in 2024.
  • The government has taken various measures to mitigate the impact of inflation on households, such as reducing energy taxes and increasing child benefits
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