Turkey’s inflation surged to a 20-year high of 61.14% YoY in March, up from 54.44% YoY in February. This marked the 10th consecutive month of acceleration in general prices, fueled by higher energy and commodity costs as current geopolitical conflicts compound the impact of the lira’s fall last year. Turkey imports majority of its energy needs.
The rise in inflation was broad-based across all components, but driven mainly by transportation +99.12%, food & non-alcoholic beverages +70.33% and furnishings & household equipment+69.26%. Turkey’s inflation is expected to remain elevated around 65%- 70% for the rest of the year, easing to 44%- 45% only towards end- 2022 when the high base effect kicks in.
