- The biggest annual rise in consumer prices was in the transportation sector, up 119.11 percent.
As per relevant data, The inflation rate in Turkey rises to 79.6 percent, which is the highest inflation in the last 24 years. The lira continues its path and becomes weaker daily, and global power and products cost are hiked.
Inflation started to rise during the autumn when the central bank slowly cut the lira policy rate by 500 basis points to 14 percent in an easing cycle sought by President Recep Tayyip Erdogan.
In July, consumer prices rose by 2.37 percent Turkish Statistical Institute told Reuters news that the predicted inflation is 2.9 percent, and yearly consumer price inflation is predicted to be 80.5 percent.
Jason Tuvey(Senior market economist) at Capital Economics mentioned that the yearly inflation rate might be approaching a high level, with power inflation descending sharply and food inflation closer to the inflation limits.
“Even if inflation is close to a peak, it will remain close to its current very high rates for several more months.” Tuvey mentioned in a note, adding more, “Sharp and disorderly falls in the lira remain a key risk.”
The biggest annual rise in consumer prices was in the transportation sector, up 119.11 percent, while food and non-alcoholic drinks prices climbed 94.65 percent.
This year inflation rate hiked after a severe effect on the economy behind the Russian invasion of Ukraine; for this reason, the lira continues to decline.
Turkey’s currency value decreased by 44 percent last against the value of the United States dollar, and this year a slight cut down of 27 percent is seen in 2022.
While writing this article, the price of the Turkish lira compared to the US dollar was 1 Lira= 0.0556 US dollars.
A sharp decline is seen in the rates and values of Turkish currency compared to US dollars.
After the pandemic, several countries faced a financial crisis like Srilanka, Zimbabwe, and many others. Nowadays, Turkey is also facing high inflation in commodities prices, which may ultimately result in the economy’s collapse.