Turkish inflation out of control

Must read

Germany issues warning over Russian gas

A complete suspension of natural gas supplies from Russia is a possibility, the head of Germany's Federal Network Agency warned on Saturday.In an interview...

Baltic nation sees soaring electricity and gas tariffs

Tariffs for gas and electricity in Lithuania are going to be significantly higher from July 1, the country’s government announced on Friday, promising to...

Consumer prices in Turkey soared by 69.97% in April compared to the same month last year, according to official data released on Thursday. Inflation has soared amid rising energy prices against the backdrop of the Russia-Ukraine conflict and due to a lira crash late last year.

The figure, released by the Turkish Statistical Institute, exceeded the central bank’s estimate of 68% and represents the steepest increase in two decades. Month-on-month, consumer prices rose 7.25%. Food prices have risen by 89% since last year, and transportation costs by 105.86%. According to the data, the annual core inflation was 52.37%.

The government hopes that the rising cost of living – fueled by increased commodity prices attributed to the Ukraine conflict – will begin to slow down after May.

Turkey imports 93% of the oil and 99% of the gas it consumes. Sanctions piled on Russia’s energy sector over the conflict in Ukraine and other geopolitical factors have led to a worldwide rally of oil and gas prices.

The Turkish lira lost 44% of its value against the US dollar last year after Turkey’s central bank cut interest rates by a full percentage point in November – the third cut since September – and signaled it would slash rates again in December, in an attempt to curb rising inflation.

For more stories on economy & finance visit RT’s business section

More articles

Latest article

Germany issues warning over Russian gas

A complete suspension of natural gas supplies from Russia is a possibility, the head of Germany's Federal Network Agency warned on Saturday.In an interview...

Baltic nation sees soaring electricity and gas tariffs

Tariffs for gas and electricity in Lithuania are going to be significantly higher from July 1, the country’s government announced on Friday, promising to...