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Prices in Turkey Rise at Fastest Pace in 24 Years

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Prices in Turkey Rise at Fastest Pace in 24 Years
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The most recent official statistics show that prices in Turkey are growing at their quickest rate in 24 years.

The annual rate of inflation, or the rate at which prices rise, was somewhat higher than anticipated in June, coming in at 78.62 percent.

The Ukraine war contributed to some of the biggest price increases in housing and transportation.

Since the Turkish president lowered interest rates in an effort to support the economy last year, inflation has increased.

Typically, nations would raise interest rates in an effort to reduce inflation. However, President Recep Tayyip Erdogan has called interest rates “the mother and father of all evil” and has employed more unconventional measures to attempt to cool prices, such as meddling in foreign exchange markets.

The value of the Turkish lira has decreased as a result of the reduction in interest rates from 19 percent to 14 percent last year, making it more expensive for the nation to buy products from outside.

The cost of transportation increased by 123 percent over the previous year, according to the most recent inflation statistics.

Food and non-alcoholic drinks followed closely behind with price increases of 94%, while the price of furniture and home goods increased by 81 %.

Since September 1998, when annual inflation reached 80.4 percent and Turkey was trying to end a decade of protracted high inflation, the total inflation rate has been at its highest level.

Businesses are struggling as a result of the price increase.

The general manager of Kemer Holiday Club in Antalya, Volkan Yorulmaz, commented, “I’ve never witnessed a season like this before.” “Because prices fluctuate daily, I am unable to set up a budget for my expenditures. The idea of inclusion is no longer viable.

“Without them, the start of the season was a bit challenging because more than half of our visitors are from Russia or Ukraine.

“Turkish nationals are attempting to visit for vacation. To make it more reasonable for them, they utilize credit cards, pay in installments, or cut short their scheduled vacations.”