With the collapse of the Turkish lira which has lost 45% against the dollar in one year, prices are soaring in Turkey. They have grown by 36.08% in one year. A record since September 2002 and a result more than seven times higher than the government’s initial target. This subject of inflation, which had already reached 21.31% year-on-year in November, has become a politically explosive subject in Turkey eighteen months before the next presidential election scheduled for June 2023.
A surge in prices that is difficult to sustain
The opposition has accused in recent months the National Statistics Office (Tüik) of knowingly and widely underestimating the rise in prices. For the Turks, the collapse of the currency translates into a surge in prices that is difficult to sustain, the country being very dependent on imports, especially for raw materials and energy. Every morning, long queues form along municipal kiosks that sell bread for less than in bakeries and stores.
After several weeks of historic losses, the Turkish lira nonetheless recovered sharply in mid-December following the emergency measures announced by Turkish President Recep Tayyip Erdogan, who massively sold dollar reserves. A thinning of short duration. Last week, the currency once again saw its value melt against the greenback.