Turkey’s Latest Inflation At 79.6%, Highest in 24 Years – Blame Lira Weakness and Russia-Ukraine War – Bitcoin Economic News

According to the latest data from the Turkish Statistical Institute, the country’s annual inflation rate for July was 79.6%, the highest in 24 years. Higher transportation costs and food and non-alcoholic beverages were among the product categories that contributed to the overall rate increase.

Transportation costs have risen the most

Turkey’s consumer inflation rate rose in July to 79.60% – the highest level in 24 years – while the monthly rate was 2.37%, the most recent. data From the Turkish Statistical Institute (TSI) showed. According to the data, transportation costs, which rose by 119.1%, were one of the four major product groups whose prices rose faster than the Consumer Price Index (CPI).

Turkey's latest inflation rate of 79.6%, highest in 24 years - blamed on weak lira and Russian/Ukrainian war
Source: Turkish Statistical Institute

The other three product groups whose inflation rate rose faster than 79.6% were food and non-alcoholic beverages which rose by 94.65%, home furnishings and equipment (88.35%), and alcoholic beverages and tobacco (82.66%).

However, according to TSI, while the transport group is referred to as the group with the largest monthly increase, the data shows that it is also the only major group that recorded a negative monthly increase – about -0.85%. On the other hand, the healthy group saw the highest monthly increase of 6.98%, followed by the alcoholic and tobacco group which saw an increase of 6.85%.

The rate of price increases accelerating in 2022

Although the inflation rate in Turkey has been trending upwards since 2021, starting from January 2022, the rate of price increases has accelerated. This can be confirmed by the latest TSI data showing that since December 2021 prices have risen by an average of 45.72%. At the same point last year, prices were up 10.41%, and 6.37% the year before.

Meanwhile, according to Reuters ReportThe rapid devaluation of the local currency in Turkey, as well as the impact of the ongoing Ukrainian-Russian war, are major factors that contributed to the price hike. Although the rate has risen to levels last seen in 1998, Turkey’s central bank has reportedly said it expects that rate to fall to 42.8% by the end of 2022.

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Terence Zimoara

Terence Zimoara is a Zimbabwean award-winning journalist, author and writer. He has written extensively about the economic problems of some African countries as well as how digital currencies can provide Africans with an escape route.

photo credits: Shutterstock, Pixabay, Wiki Commons, Caglayan Unal Sumer / Shutterstock.com

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