Rising Inflation Rates in Turkey: +67%

Turkey’s consumer price index increased by +4.53% in February 2024 compared to January (+11.54% from December), while compared to the same month in 2023, the increase was +67.07%.

Inflation continues to batter the country, hitting record highs in the restaurant and hospitality industry: +94.78% in a year.

According to some analysts quoted by the Italian economic newspaper Il Sole 24 Ore, “inflationary pressures in the economy remain very strong. This suggests that the attempt to curb price increases failed earlier this year.”

Turkey’s central bank raised interest rates by 3650 basis points in June 2023, but since the institution’s new president Fatih Karahan, who replaced the resigned Hafize Gaye Erkan in early February, took office, he has put the brakes on the tightening. The government believes that the current interest rate of 45% is sufficient to reduce inflation. However, some economists believe that further rate increases are likely after the local elections on March 31, 2024.