The annual average rate in the increase of goods and services prices in Turkey has slightly reduced for the first time in more than a year.
According to the official figures released on Monday, there has been an ease in Turkey’s inflation rate although it remained close to 24-year highs.
The Turkish Statistical Institute announced that, consumer prices for the year reduced to 84.39% in November, up from 85.51% that was recorded in the month of October. “The monthly inflation rate was 2.88% in November, compared with 3.51% in the previous month,” It stated.
The treasury and Finance Minister, Nureddin Nebati disclosed that, it is the first time experiencing an ease in the annual inflation rate since May 2021.
“As we have previously stated through various media, we have left the peak in inflation behind us, and entered a downward trend, unless there is an unexpected global development.”
Minister Nureddin Nebati
Some economist in Turkey also revealed that, while the pandemic and Russia’s invasion of Ukraine have increased the rate of inflation around the world, Turkey’s inflation was fueled by the current President of Turkey, President Recep Tayyip Erdogan’s belief that, high borrowing costs lead to higher prices.
Sectors Predominantly Affected By Inflation
The Central bank of Turkey has slashed interest rates by 5 percentage points (5%) since August to 9 percentage points (9%), regardless the fact that, the average increase in the prices of goods and services has deepened cost-of-living crisis in the country.
In contrast, Central banks around the world have been raising rates to fight soaring inflation.
President Recep Tayyip Erdogan communicated that, his model which prioritizes growth, investments, employment and exports are expected to yield significant results in the new year.
According to the official data released by Turkey, the sharpest rise in annual prices of goods and services were in the transportation sector at 107%, followed by food and non-alcoholic drinks prices at 102.55%.
According to some Economist in Turkey, the amount at which consumers purchase food stuffs from the market shot up, indicating that huge amount of money was used to purchase very few commodities. Also, there was an increase in the prices of fuels leading to an increase in the charge for transportation.
Some experts in Turkey have questioned the state institutes’ figures and the Inflation Research Group, which is made up of independent economists, who disclosed that, Turkey’s true inflation rate for November is 170.7%.
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