Inflation in Turkey rose to 68.5 percent in March. The prices of food, services and education are considerably higher than a year earlier. The Turkish central bank’s interest rate increases do not yet have the desired effect.
The increase in food prices is an important cause of high inflation, but other prices are also rising rapidly. Core inflation, which excludes food and energy, was 75.2 percent in March. That’s a record. In February, consumer prices were still 67.1 percent higher than a year earlier.
A stroke of luck is that the increase is leveling off slightly on a monthly basis. Consumer prices were 3.16 percent higher in March than in February. In previous months, the monthly increase was even greater.
According to economists, the fact that inflation is rising despite significant interest rate increases by the Turkish central bank is partly due to the increase in the minimum wage at the beginning of 2024. As a result, consumers spend more money, which in turn leads to stronger price increases. The minimum wage had actually been increased considerably to compensate people for the high inflation.
According to experts, high inflation in Turkey is one of the reasons why President Recep Tayyip Erdogan’s party lost significantly in last week’s local elections.
Voters would blame Erdogan’s party AKP for the fact that inflation remains high. And retirees are dissatisfied because they have not yet been compensated for the high inflation.
Tags: Turkish inflation continues rise prices percent higher March Economy
