Inflation hit new highs in March at 61.14% year on year, up 5.46 points in one month, official statistics showed on Monday.
In February, consumer price inflation had reached 54.4% year-on-year, accumulating records linked to the collapse of the Turkish lira and the surge in energy prices in particular.
The invasion of Ukraine by Russia, two important trading partners of Turkey on which its energy supplies (gas and oil) and cereals, but also its tourist industry depend closely, is costing the country dearly. Turkish and foreign economists also accuse the National Statistical Office (Tüik) of underestimating the extent of price increases by more than half.
The Turkish lira, which lost 44% of its value against the dollar in 2021, nevertheless remained stable on Monday morning at 14.7 pounds for one dollar (16.2 for one euro), the market having already anticipated rising inflation.
President Erdogan is trying to curb inflation
Less than fifteen months before the next presidential election, scheduled for June 2023, the ongoing conflict since February 24 raised fears of further consumer price increases, adding to the already difficult situation of the Turkish economy.
President Recep Tayyip Erdogan, who is working to promote direct negotiations between the two Russian and Ukrainian presidents, last week announced a reduction in VAT from 18% to 8% on hygiene products and catering in order to relieve the finances of his fellow citizens.
In February, he had already lowered the VAT from 8 to 1% on basic food products, without however succeeding in curbing the price increases which partially erased the salary increases granted on January 1.