Turkey’s annual inflation hit 61.14 percent on Monday, a 20-year high. This has deepened the livelihood crisis for the families. The Turkish Statistical Institute said consumer prices rose 5.46 percent in March compared to the previous month. Annual inflation was up from 54.44 per cent in February.
According to the data, the highest annual price increase was in the transport sector at 99.12 per cent, while the prices of food items increased by 70.33 per cent. This is the biggest year-on-year increase since March 2002. Rising prices are part of the economic crisis caused by the COVID-19 pandemic. Meanwhile, Russia’s invasion of Ukraine has seen gas, oil and grain prices soar.
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Turkey’s rising inflation comes amid a cut in interest rates last year. President Recep Tayyip Erdogan is against the high cost of debt. Contrary to the established thinking of economics, the President insists that high interest rates cause inflation.