According to data, the effect of the Ukraine war, rising commodity costs, and a decline in the currency since a crisis in December all contributed to Turkey’s annual inflation rate reaching a 24-year high of 78.62% in June, slightly more than expected.
Since the central bank gradually lowered its policy rate by 500 basis points to fourteen percent (14%) last autumn as part of an easing cycle aimed at boosting economic development, the lira has fallen and inflation has risen.
According to the most recent figures, consumer prices increased by 4.95% in June, versus a Reuters poll’s prediction of 5.38%. Consumer price inflation was anticipated to be 78.35% annually.
June consumer prices including transportation costs increased by 123.37% in June, while food and non-alcoholic beverage prices increased by 93.93%, according to figures released by the Turkish Statistical Institute on Monday.
It was the highest annual inflation rate since September 1998, when Turkey was trying to end a decade of protracted high inflation and annual inflation touched an all-time high of 80.4%. After the statistics, the lira remained at 16.78 %.
This year’s inflation has been exacerbated by the negative economic effects of Russia’s war in Ukraine.
In relation to the dollar, the lira currency fell by % last year and is now down by 21% this year.
In June, the domestic producer price index increased 6.77 % month over month, giving it a 138.31 % annual increase.
