According to the latest data from the Turkish Statistical Institute, the country’s annual inflation rate for the month of July was 79.6%, the highest in 24 years. Rising transportation costs, food and non-alcoholic beverages were some of the product categories that contributed to the overall rate increase.
Transport costs have increased
Turkey’s consumer inflation in July rose to 79.60% – the highest in 24 years – while the monthly rate stood at 2.37%, the latest. data of the Turkish Statistical Institute (TSI) showed. According to the data, transport costs, which rose by 119.1%, were one of the four main product groups whose prices rose faster than the consumer price index (CPI).
The three other product groups whose inflation rate increased by 79.6% are food and non-alcoholic beverages, which increased by 94.65%, furniture and household equipment (88.35%), and alcoholic beverages and tobacco (82.66%). .
However, according to the TSI, while the transport group is noted as the group with the largest monthly increase, the data shows that it is also the only main group that recorded a negative monthly increase – approximately -0.85%. On the other hand, the health group saw the highest monthly growth of 6.98% and is closely followed by the alcohol and tobacco group which saw an increase of 6.85%.
Price Increases Accelerated in 2022
Although the inflation rate of Turkey has been trending upwards since the year 2021, since January 2022, the rate of price increase has accelerated. This can be confirmed by the latest TSI data, which shows that since December 2021 prices have increased by an average of 45.72%. At the same point last year, prices increased by 10.41%, and 6.37% a year before.
Meanwhile, according to Reuters a report, Turkey’s rapidly depreciating local currency, as well as the impact of the ongoing Ukraine-Russia war, are some of the main factors contributing to the rise in prices. Despite the rate rising to levels last seen in 1998, the Turkish central bank has reportedly said it expects this to drop to 42.8% by the end of 2022.
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