Inflation in Turkey hits 70% in April
Russia’s invasion of Ukraine has led to growing gas, oil and grain prices which have hit Turkey especially badly because the country relies heavily on imports.
Monday 9 May 2022 11:17, UK
Inflation in Turkey has hit nearly 70% in April amid skyrocketing prices.
Critics blame surging prices on President Recep Tayyip Erdogan‘s economic policies, which have seen interest rates lowered to boost growth and exports.
In contrast to most economists, the Turkish leader has opposed higher borrowing costs because he says they cause inflation.
In countries like the UK and US, leaders have used increased interest rates to combat inflation.
The UK’s inflation rate was 7% in the year to March, while the Bank of England raised its base rate to 1% last week.
Turkey’s central bank cut interest rates by 5% from September to January. The figure is now 14%.
The Turkish lira lost 44% of its value against the US dollar in 2021.
Russia’s invasion of Ukraine has led to growing gas, oil and grain prices, which have hit Turkey especially badly because the country relies heavily on imports.
In the transport sector, prices have gone up by 106%, followed by an increase of 89% for food and non-alcoholic drinks, according to the Turkish Statistical Institute.
The government has cut taxes on essential goods and adjusted energy prices.
Mr Erdogan said he expects inflation to start to come down in May.