Turkey’s Inflation Reaches 78.6 Percent, Highest Record in 20 Years

ISTANBULKOMPAS.com – Turkey’s consumer price index recorded an increase or inflation by 78.6 percent on an annual basis (year on year/yoy) in June 2022. Inflation This is the highest in the last two decades.

Reported from CNNTuesday (8/4/2022), soaring inflation in Turkey was mainly caused by a spike in food and beverage prices as well as transportation costs.

In June, food prices in Turkey nearly doubled, and transportation costs skyrocketed by 123 percent.

Also read: June 2022 Highest Annual Inflation for 5 Years, The Ministry of Finance Says

Like countries in various parts of the world today, the spike in inflation in Turkey is caused by high prices for crude oil and other energy commodities. Then, food prices in Turkey also recorded a spike.

“The strong increase in global commodity prices, especially energy commodities and agricultural products has fueled inflation in June,” Turkey’s Finance Minister, Nureddin Nebati, wrote on his official Twitter account.

Also read: June Inflation 0.61 Percent, Triggered by Prices of Red Chili to Filter Clove Cigarettes

Turkish lira weakening

Besides, his height Turkish inflation not apart from the exchange rate of the lira against the US dollar which has fallen more than 20 percent since the beginning of this year. The reason is, the drop in the lira has made the cost of imports in the country higher.

The weakening of the lira itself was caused by the policy of Turkish President Recep Tayyip Erdogan which was considered “unusual”.

As is known, in September last year, instead of raising the central bank’s benchmark interest rate to suppress inflation, Erdogan decided to cut interest rates.

Until now, the monetary policy is still maintained. Erdoan argues that low benchmark interest rates can boost production and exports, which in turn can reduce inflation.

Also read: The Dilemma of the Ministers of Finance, Sri Mulyani Until the Ministers of Finance of Turkey and Egypt Disobeyed

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