Turkey’s inflation rate has risen to 83%

Turkey’s inflation rate has risen above 83%, reaching a 24-year high. The three industries with the most price increases are transportation, food, and housing. The true yearly rate, according to independent specialists at the Inflation Research Group, is 186.27%.

To stimulate the economy, Recep Tayyip Erdogan, the president of Turkey, deviated from tradition last year by lowering interest rates. To combat inflation, the majority of central banks hiked interest rates.

The largest annual price increases were in the transportation industry (117.66%), followed by food and non-alcoholic beverages (93%).

Interest rates have been referred to by Mr. Erdogan as “the mother and father of all evil,” and one of his economic plans includes intervention in currency markets.

Since interest rates were lowered from 19% to 14% last year, the value of the Turkish lira has declined, making it more expensive for the nation to buy goods from abroad.

Against the US dollar, the lira dropped to a fresh record low of 18.56.

Turkish inflation would continue to be in the “abnormally high range unless policies turn orthodox,” according to US banking behemoth JP Morgan.

In a broadcast speech on Monday, Mr. Erdogan declared, “We will construct the century of Turkey together, perhaps by conquering the inflation crisis.

According to former Turkish Central Bank Chief Economist Hakan Kara, the record level represents the steepest increase in inflation since World War Two.

The economic crisis and high inflation are the key issues facing Mr. Erdogan’s government as he seeks reelection in 2014.

Prices are rapidly increasing globally as a result of several factors, including the Ukraine crisis and supply limitations connected to COVID, which have raised the cost of food and energy.