Tuesday, March 28

Inflation in Turkey touches 50%, the highest in 20 years

Year-on-year inflation in Turkey reached 48.7% in January, its highest level since April 2002, due to the collapse of the Turkish lira in 2021 that affected purchasing power, according to official figures released on Thursday.

Consumer prices grew 48.7% in the 12 months ending in January, higher than the annual rate of 36.1% in December, the Turkish statistics agency revealed.

The data was released a day after Turkish President Recep Tayyip Erdogan replaced the head of the statistical office for the fourth time since 2019.

The Turkish press reported that Erdogan was unhappy with the agency’s data, according to which inflation reached its highest level since his party came to power two decades ago, complicating his plans to seek re-election in 2023.

Independent figures collected by Turkish economists indicate that the year-on-year inflation rate rose by more than 110% in January.

Erdogan has steadfastly rejected raising interest rates on the grounds that it would cause inflation, contrary to what most economists believe.

On Monday he admitted that the Turks “will have to bear the brunt” of inflation for “some time.”

Turkey has faced high interest rates for years, including two currency crises since 2018.

once / zak / lth / mas / d