Last year saw inflation jump considerably high in Turkey due to a number of internal and external issues. The Turkish Central Bank used many tools to curb inflation and support the currency even with intense political pressure against its policies.
Today, the original group who fought off inflation have been replaced and were all scapegoats in the political web of blame. Official numbers indicate inflation is around 16%. However, when you talk to people on the street they have mixed views on the official rate. Many claim that many goods that the middle and upper classes consume such as holiday travel packages saw prices elevated along with items connected to housing such as white goods and furniture. Also, many who eat out and drink coffee at cafes saw higher prices. However, lower income consumers claim prices at the local street bazaars have decline for common staples. Also, many have found bargains at clothing stores.
Forecast: 15.8% Turkish inflation rate in August
This is based on the CPI’s basket of food, fuel, and clothing which weigh high in the basket.
However, if the currency continues to depreciate again the US dollar the rate may rise again in September coupled with delayed price increases announced by the government.
