Inflation in Turkey rose to 68.5% – Kommersant

Today the National Statistical Institute of Turkey published data on inflation in the country for March. Compared to March last year, inflation was 68.5%. In February of this year, inflation was slightly lower – 67.1%. The acceleration of inflation was largely due to rising prices in the education sector (+13% compared to February), the hotel sector (+5.6%) and public catering (3.9%). Year-on-year price growth in the education sector in March was the highest (+104%), in the hotel and catering sector prices have increased by 95% since last year, in the field of medicine and healthcare – by 80%.

Experts believe that the acceleration of inflation in March occurred largely against the background increase minimum wage, which the country’s authorities were forced to accept due to public discontent and the day before elections. At the end of last year, the minimum monthly salary was increased by 49%, to 17 thousand liras ($578).

To combat inflation, the Turkish authorities have already brought The basic discount rate of the Central Bank is up to 50%. However, a number of economists notesthat until the middle of last year the policy of the Central Bank was under the direct control of President Erdogan, who refused raise the rate while inflation was already accelerating, so quite a lot of time was lost.

Evgeny Khvostik