Turkey’s monthly inflation rate reached 85.51 percent in October 2022, the highest inflation rate recorded during the specified period. The year-on-year rate of change in the Consumer Price Index (CPI) in June 2023 was 38.21%, the lowest level since January 2022. As of January 2024, CPI has risen again, reaching nearly 64.9%. Turkey’s inflation rate has been consistently in double digits since the second half of 2019, and inflation will accelerate at the fastest pace in 2022.
High production costs
Turkey has seen a continuous increase in the domestic producer price index, which has directly translated into higher prices for all consumer goods and services. This has led to a significant increase in the Consumer Price Index (CPI) for all commodity groups in 2022. The food and non-alcoholic beverages category was one of the most highly inflated categories in the CPI in the same year. This particularly affected Turkish consumers as these products accounted for the largest share of household expenditures in 2022.
Soaring food prices
Since 2020, food prices have increased significantly around the world, and Turkey is no exception. Although inflation has recently begun to slow, food prices in Turkey have continued to rise steadily, rising nearly 70 percent in January 2024 compared to the same month last year. With the country’s agricultural producer price index (PPI) soaring recently, it’s no surprise that food inflation hasn’t subsided.
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