Turkey’s annual inflation rose to its highest level in more than 19 years, setting an unexpected record, imposing new burdens on the exhausted Turkish lira, and “returning strong to the class of losses after a steady recovery.”
Annual inflation for December, Turkey’s annual inflation rate was 36.08 percent higher than expected, reaching its highest level since September 2002. After the Turkish lira depreciated by more than 40 percent last year, it has seized power in the country.
According to the Turkish Statistics Office, the Consumer Price Index rose by 13.58 per cent on a monthly basis, 36.08 per cent year-on-year, by 19.08 per cent and 79.89 per cent on a monthly basis. On a monthly basis, last year in December, due to the increase in import prices.
The Istanbul Chamber of Commerce on Saturday revealed that retail prices in Turkey’s largest city rose 9.65 percent on a monthly basis and 34.18 percent on an annual basis in December.
In a city of about 20 percent of Turkey’s 84 million people, wholesale prices rose by 11.96 percent on a monthly basis and 47.10 percent on an annual basis, the room added.
On the first day of the new year, the Turkish government raised the price of electricity for homes by 50 percent, to 127 percent for those with low consumption (up to 150 kilowatts per month) and over 150 kilowatts. And 130 per cent for industrial use. The price of natural gas for homes increased by 25 percent, industrial use by 50 percent and gas used in power plants by 15 percent.
Experts expect the rise to be reflected in consumer prices by next February, which could lead to a rise in inflation.
As soon as the new inflation figures were announced, the exchange rate of the Turkish lira fell by more than 5 per cent to 13.92 lira against the dollar in yesterday’s trade, which closed 13.19 lira against the dollar on Friday, after closing last week’s trading.
Meanwhile, Turkish President Recep Tayyip Erdogan said that Turkey’s total exports in 2021 would increase by 32.9 percent to $ 225 billion and $ 368 million, respectively, from the previous year.
When Erdogan announced the exports figures for the Turkish Exporters’ Council in Istanbul yesterday, our total exports in 2021 increased by 32.9 percent from the previous year to 225 billion. $ 368 million, a record number. He pointed out that Turkey’s foreign trade volume increased from $ 87.6 billion in 2002 to $ 496.7 billion in 2021, and that the foreign trade deficit in 2021 decreased by 7.8 percent to $ 45.9 billion.
Erdogan also said that Turkey aims to increase the value of its exports to $ 250 billion this year, pointing out that the number of countries trading with Turkey in local currency is increasing day by day. Erdogan revealed that the United States was the fastest growing target for Turkey’s exports.
“We have set an economic growth target of 5 percent for 2022 to accelerate the current account surplus,” the Turkish president said.