Inflation in Türkiye soars to 59%

Inflation reached 58.9% year-on-year in August, the highest since December 2022, according to official data published this Monday.

Prices in Turkey increased almost 60% compared to last August, rising 9.1% compared to the previous month, and driven by the depreciation of the Turkish lira.

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After eight months of decline, inflation began to accelerate again in July, reaching 47.8% year-on-year. Its lowest level in a year and a half was 38.2% year-on-year in June, while its maximum was 85.5% in October 2022.

Although the official figures are high, they may not reveal the entire problem; Independent economists from the Inflation Research Group (Enag) estimate the year-on-year increase in consumer prices at up to 128%.

The Turkish Central Bank, whose mission is to ensure price stability, has raised its main base interest rate from 8.5% to 25% since June to curb inflation.

In late July, as inflation began to accelerate again, the bank revised its forecasts, saying inflation will reach 58% by the end of 2023 — more than double previous projections — before returning to “stability” by from 2025.

Turkey has been experiencing uninterrupted double-digit inflation since late 2019, making the cost of living difficult to bear for families across the country.

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