The rise in consumer prices reached 36.08% over one year in December in Turkey, a record since September 2002 due to the collapse of the Turkish lira, according to official figures released Monday (January 3rd). This inflation, more than seven times higher than the government’s initial target, can be explained by the fall of the Turkish lira, which has lost nearly 45% against the dollar over one year. Inflation, which reached 21.31% year-on-year in November, has become a politically explosive subject in Turkey eighteen months before the next presidential election slated for June 2023.
The opposition has accused in recent months the National Statistics Office (Tüik) of knowingly – and largely – underestimating the rise in prices. For the Turks, the collapse of the currency translates into a surge in prices that is difficult to sustain, the country being very dependent on imports, especially for raw materials and energy.
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After several weeks of historic losses, the Turkish lira rallied sharply in mid-December following emergency measures announced by Turkish President Recep Tayyip Erdogan and massive sales of dollar reserves, but the currency is seeing again its value melted for a week against the greenback.
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