According to the latest data from the Turkish Statistical Institute, the country’s annual inflation rate for the month of July was 79.6%, the highest in 24 years. The rate of inflation was driven by rising transport costs, increased food costs, and the rise in non-alcoholic beverages.
The most expensive transportation costs rose
Turkey’s consumer inflation rate in July surged to 79.60% — the highest in 24 years — while the monthly rate stood at 2.37%, the latest data from the Turkish Statistical Institute (TSI) has shown. The data shows that transportation costs rose by 119.1% in July, making them one of four major product categories whose prices rose more quickly than the Consumer Price Index (CPI).
Other product categories that saw an inflation rate rise faster than 79.6% include food and beverages (94.65%), furnishings and home equipment (88.53%), and alcohol beverages and tobacco (82.66%).
However, according to the TSI, while the transportation group is noted as the group with the biggest monthly increase, the data shows it is also the only main group that recorded a negative monthly increase — approximately -0.85%. However, 6.98% was the largest monthly increase for the Health Group. This is closely followed in the Alcohol and Tobacco group that saw 6.85%.
The Rate of Price Growth Accelerated in 2022
Although Turkey’s inflation rate had been trending upwards since the year 2021, starting in January 2022, the rate of price increases has accelerated. The latest TSI data shows prices have increased an average 45.72% since December 2021. The prices increased by an average of 10.41% last year and 6.37% the year prior.
Meanwhile, according to a Reuters report, Turkey’s rapidly depreciating local currency, as well as the impact of the ongoing Ukraine-Russia war, are some of the main factors contributing to the rise in prices. Despite the rate’s rise to levels last seen in 1998, the Turkish central bank has reportedly said it expects this to drop to 42.8% by the end of 2022.
Let us know your opinions on the story. Comment below and let us know how you feel.
Image creditShutterstock.com – Pixabay. Wiki Commons. Caglayan Unal sumer.
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.