Inflation rate in Turkey
Economic inflation can be defined as “a continuous rise in the prices of consumer goods in a successive and accelerating pattern that causes money to lose value over time.”
That is, if you buy a commodity today at a certain price, you will not be able to buy the same commodity at the same price at a later time, and thus purchasing power is lost over time due to the decrease in the value of money simultaneously with the rise in prices.
Inflation rate in Turkey
The inflation rate in Turkey is considered lower than expected by experts, and this is despite the fact that the inflation rate in Turkey has jumped to 83.45%, which is the highest rate in the last 24 years.
This is what was shown by official statistics and data issued in October 2022.
The reason that the inflation rate in Turkey is lower than expectations can be attributed to the decision of the Turkish Central Bank to reduce interest rates twice in a row in August and September 2022.
Below are the most prominent statistics and official data about inflation rates in Türkiye in the past period:
The inflation rate in Türkiye in October 2021 was 19.89%.
Also, inflation in Türkiye in January 2022 reached 48.69%.
The inflation rate in Türkiye in July 2022 reached 79.6%.
Inflation in Turkey in August 2022 reached 80.2%, then the inflation rate in Turkey witnessed an increase to reach 83.45% in September of the same year.
As for the inflation rate in Turkey or inflation rates in Turkey 2023, the inflation rate in Turkey reached 47.8% in July 2023.
Also, regarding inflation in Turkey 2023 or expectations about inflation in Turkey for this year, it is expected that the inflation rate in Turkey will reach 60% by the end of 2023.
The global economy in general witnessed successive and very rapid events, including inflation rates that rose in many countries around the world.
As for the causes of inflation in Turkey, they are many, including many repercussions that directly affected the rates and rates of inflation in Turkey.
The high price of energy and oil affects inflation in Turkey
The rise in global energy prices is one of the most prominent issues affecting the economic systems in all countries of the world, including Turkey.
The rise in the price of oil in particular can be considered one of the most prominent influences on the inflation rate in Turkey or inflation in Turkey 2023.
This is because Turkey imports about 90% of its oil needs, which is a large percentage of course, and in conjunction with the rise in the price of oil, the inflation rate in Turkey consequently rises.
This prompted the Turkish government to attempt to generate energy from other sources, such as solar energy, to meet part of the actual energy need and reduce the import rate, thus avoiding a large part of the causes of inflation in Turkey.
Corona epidemic crisis
The Corona epidemic crisis came as one of the problems that directly affected all global economic systems. This crisis affected all countries without exception, including Turkey.
The Corona epidemic has affected inflation in Turkey due to:
Having to lay off part of the workforce, which affects the economy in general, including the inflation rate in Turkey.
The percentage of tourist demand has also decreased significantly due to the repercussions of Corona. This, of course, negatively affects inflation in Turkey due to the lack of incoming foreign currency.
The Corona epidemic has also caused a decline in global trade, including trade in Turkey, so it is one of the most prominent causes of inflation in Turkey.
Wars in neighboring countries
The wars that began in neighboring countries, most notably the Russian-Ukrainian war, which has been ongoing since February 24, 2022, caused the deterioration of global economic conditions, as global inflation rose to its highest rates in the past forty years.
Turkey certainly had a significant share of this direct impact as a result of the ongoing war, and the war between Russia and Ukraine can be considered one of the most important causes of inflation in Turkey.
The depreciation of the lira and its impact on inflation in Turkey
According to the economic rule, the purchasing value of the local currency directly and quickly affects inflation rates.
Thus, the decline in the value of the Turkish lira against foreign currencies is one of the most prominent causes of inflation in Turkey.
High interest rates are one of the strongest causes of inflation in Türkiye in 2023
Despite this, the interest rate in Turkey remains high and directly affects inflation rates in Turkey or inflation in Turkey 2023, as follows:
The interest rate affects inflation in Turkey because the Turkish economy relies heavily on bank or banking credit.
The high interest rate also affects inflation in Turkey because it raises the costs of production and services in various fields of industry and trade, which in turn affects the wheel of investment and development and thus affects the inflation rate in Turkey.
Investing in real estate
The more the commodity is in constant demand, the more capital it preserves, and that is why investing in real estate
It is one of the first ways to preserve the value of capital in light of the challenges of inflation in Turkey.
This is because the demand for real estate does not depend on the fact that it is a commodity of fixed origin and constantly needed by the public, and not a consumer commodity that is subject to dissipation and loss.
This is how economic experts advise you to make the most of your capital via...
Starting real estate investment in Turkey even in light of inflation, and here the role of Lali Real Estate Group becomes clear as the first real estate expert approved by the Turkish government in the field of real estate.