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Inflation in Turkey accelerated to the highest in 19 years in December


January, 03 2022
watermark Economic news

According to the Statistical Institute of Turkey (Turkstat), consumer prices in December 2021 increased by 36.08% compared to the same month of the previous year – the fastest pace since September 2002, amid the collapse of the lira. Inflation accelerated in comparison with November 2020 (21.31%) and exceeded the consensus forecast of experts at 30.6%. 


On a monthly basis, consumer prices in Turkey rose by 13.58% in December. In November 2021, the increase was 3.51%.


Food and non-alcoholic beverages in December rose by 43.8% year-on-year, utilities – by 28.5%, clothing and footwear – by 20.1%.


Recall that the Turkish Central Bank lowered the base interest rate in December for the fourth time in the last four months under pressure from President Recep Tayyip Erdogan, despite a significant increase in inflation in the country. After that, the rating agencies S&P Global Ratings and Fitch changed the outlook for Turkey's ratings to «negative», noting the weakening of the lira and increased inflation.


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