x

Economy

Inflation in Turkey Soars to Eye-Popping Near 70% in April

ANKARA — Inflation in Turkey soared to nearly 70% in April, official data showed Thursday, as skyrocketing prices eat away at earnings and put even basic necessities out of reach for many households.

The Turkish Statistical Institute said consumer prices rose by 69.97% in April compared with the previous year, the biggest year-over-year increase since 2002. The annual inflation rate was up from 61.14% in March.

In comparison, the highest U.S. inflation in 40 years amounted to 6.6% last month, according to the U.S. Federal Reserve’s preferred gauge, and in the 19 countries using the euro currency, it hit a record-high 7.5%. Some central banks worldwide are raising interest rates to combat inflation, which the Fed did Wednesday and the Bank of England is expected to do Thursday.

But in Turkey, critics blame soaring prices on President Recep Tayyip Erdogan’s economic policies, which favor lowering interest rates to boost growth and exports. The Turkish leader opposes high borrowing costs, insisting that they cause inflation — a position that contradicts established economic thinking.

Turkey’s central bank has cut rates by 5 percentage points since September, to 14%, despite high inflation rates — before pausing them in January. The Turkish lira lost 44% of its value against the U.S. dollar last year.

Russia’s invasion of Ukraine, which led to a surge in gas, oil and grain prices, has compounded the situation in import-reliant Turkey. The biggest price increases in Turkey last month were in the transportation sector, at 106%, followed by food and non-alcoholic beverage prices at 89%, according to the data.

In an effort to soften the blow on households, the government has implemented tax cuts on basic goods and has adjusted electricity tariffs.

Erdogan told reporters last week that inflation would begin to recede as of May and reach a “more favorable direction” at the end of the year.

 

RELATED

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

Biden Hosts Macron amid Friction over US Climate Law (Video)

WASHINGTON (AP) — Presidents Joe Biden and Emmanuel Macron are celebrating the longstanding U.

AL RAYYAN, Qatar — Memphis Depay and Daley Blind scored in the first half and Denzel Dumfries added a late goal as the Netherlands eliminated the United States from the World Cup with a 3-1 victory Saturday that advanced the Dutch to the quarterfinals.

In many Greek households, even today, mentioning the word ‘cancer’ is still taboo.

SAN FRANCISCO – Greek Chamber Music Project (GCMP) founder, director, and flutist Ellie Falaris Ganelin on December 1 announced the GCMP’s upcoming tour, titled ‘Uproot’ which features music from Asia Minor.

ASTORIA – New York State Senate Deputy Leader Michael Gianaris joined the Museum of the Moving Image’s (MoMI) annual gala on December 1 to announce $5 million in state funding he secured to advance the Museum’s educational work in film, television, and digital media.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.