Turkish officials say inflation has risen 36% in the ongoing Lira tragedy


Turkey’s annual inflation rate surged to its highest level in the 19 years of December 2021. Turkish Institute of Statistics Published on Monday.

The country’s annual inflation rate jumped to 36.08% year-on-year in December, the highest since September 2002, just months before President Erdogan’s AK party first took office, hitting an annual inflation forecast of 30.6%. Much better.

Consumer prices rose 13.58% month-on-month.

Basic staple foods such as transportation and food and drink increased the most in the year, transportation increased by 53.66%, food and non-alcoholic beverages increased by 43.80%, and furniture and household appliances increased by 40.95%.

Due to rising costs, many Turkish people cannot afford basic commodities and have become dependent on government-issued foods such as bread. Prices for bread and other items have risen sharply in the city’s supermarkets in recent months.

Others rely on NGOs to help pay their ever-increasing invoices. This year, household and corporate electricity prices are expected to rise by 50-100%.

according to Unofficial data According to the independent inflation research group ENAG, Turkey’s annual consumer price inflation rate in December was 82.8%, well above official claims. The group also said that Turkey’s consumer prices rose 19.35 percent month-on-month in December.

Elsewhere in the Turkish Statistical Institute’s Monday data, the Domestic Producer Price Index, which measures the average change in prices received by domestic producers for goods and services, rose 19.08% month-on-month in December. On an annual basis, reflecting soaring import prices due to the depreciation of the Turkish currency.

This figure comes amid continued investor concerns about Prime Minister Erdogan’s monetary policy, which he has seen repeatedly lowering interest rates in the face of rising inflation.

The president announced last month that he would pay the difference in dollar deposits equal to Lira’s savings if the depreciation of the currency exceeds the bank’s promised interest rate to protect the deposits in his currency from fluctuations.

The move seemed to bring Lira a temporary rest, but the currency has recently steadily begun to lose traction again. Overall, Lira lost about half its value to the dollar this year.

As of 1:04 pm Greenwich Mean Time on Monday, the Turkish lira was trading against the dollar at 13:30.

Nonetheless, Erdogan said on Monday that the country’s trade deficit was $ 45.9 billion, down 7.8% year-on-year, contracted by a 32.9% surge in overseas sales.

Speak in Press conference in Istanbul Prime Minister Erdogan announced the provisional trade value for 2021 and said the surge in overseas sales prompted an upward revision of the 2022 export target.

“We are revising 2022 [export] The target is $ 250 billion. “

“Thanks to the good export performance, we have already exceeded the targets of the 2021 medium-term program. The program has decided to export nearly $ 231 billion over the next year. That’s why we have revised our 2022 target to $ 250 billion, “says Erdogan.

The president said the import / export coverage in 2021 rose 5.8 points to 83.1 percent. The biggest increase was seen in exports to the United States, but exports to the European Union increased 33 percent to $ 93.1 billion, he said.

“We are pleased that our increase in exports is evenly distributed around the world, rather than focusing solely on specific regions,” Erdogan said.

Catabella Roberts


Katabella Roberts is a reporter currently based in Turkey. She focuses primarily on the United States and covers the news and business of The Epoch Times.