Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7
Yemeni Armed Forces spokesperson Brigadier General Yahya Saree: The missile force carried out a major operation using the Palestine 2 ballistic hypersonic missile, hitting several targets in occupied Yafa.
Sirens sound in large areas of occupied Palestine after a missile launch from Yemen was detected
Al Mayadeen's correspondent: 14 martyrs arrive at al-Shifa Hospital following Israeli massacre of al-Sultan Family north of Gaza.

Turkish central bank: Inflation up to 81%, prices to continue rising

  • By Al Mayadeen English
  • Source: Bloomberg
  • 5 Sep 2022 10:14
  • 1 Shares
5 Min Read

The Turkish inflation rate is expected to peak at over 80% soon, as Erdogan attempts to slow down economic development before the elections.

  • x
  • Central Bank headquarters in Turkey (AA)
    Central Bank headquarters in Turkey (AA)

The Turkish inflation rate is due to peak above 80% soon, with fear that it will leave price expectations deep-rooted at high levels for years to come.

Turkey has generally demonstrated resilience to the fastest inflation in over two decades despite inaction by the central bank this past year. Yet with an economy of $820 billion, some parts of the country are seeing pressures moderate sharply, with rates of input cost and selling price inflation in manufacturing in August at the weakest in over a year.

According to the median forecast in a Bloomberg survey of economists, on a monthly basis, inflation in August recorded 2%, the smallest increase since September 2021, with annual inflation possibly climbing to just over 81%, more than 16 times the central bank’s official target and up nearly 80% a month earlier per another poll. Turkey’s statistics service is due to publish the data on Monday.

Bloomberg economics said: “Underlying trends signal increasing inflation inertia as core indicators climbed in July to the highest annual rate in data available. Looking ahead, we expect inflation to increase further in September before starting to retreat and ending the year higher than the central bank’s projection.”

Inflation in Turkey was mainly stable from 2004 to 2016, but due to policies that prioritized economic development and cheap lending at the expense of the Turkish lira, price stability caught up to the rounds of inflation that culminated in this year’s burst. The longer-term damage expected from the crisis may be in the way it curves price expectations.

Related News

CHP rallies tens of thousands in Ankara against 'judicial coup'

Turkey seizes 3 TV channels amid fraud probe into parent company

The central bank in August concluded in a survey that respondents anticipate inflation for the next two years to be over 24%, and the government raised its prediction for price growth from 9.8% to 65% in 2022 - showing a gradual slowing of about 25% next year, according to a new 3-year plan published in the Official Gazette on Sunday. It’s not expected to be below 10% until 2025.

Turkish officials so far have brushed off the inflation impacts, calling the price gains transitory and blaming the war in Ukraine for causing the global increase in food and commodity costs. Nevertheless, Turkey has the world’s deepest negative interest rates when adjusted for inflation, and with the lira down approximately 27% against the dollar this year, Turkey has become the worst performer in emerging markets.

Economy Minister Nureddin Nebati "promised" last month that consumer prices will begin to fall in December. According to an official report, headline inflation was driven by a 123.4 % increase in transportation costs and a 94% increase in non-alcoholic beverages, while the price of home products increased by 81.1%. 

Turkish inflation has been on the rise, with the core index reaching close to 62% in July, tracing back to a record high in data in 2004 and it is expected to continue rising much higher. Retail inflation in Turkey’s most prosperous city Istanbul last month skyrocketed shockingly to almost 100% from a year earlier. It rose to its highest level since 1998 in May, reaching 73.5% on an annual basis, and the country's military offensive in northern Syria weakened the Turkish lira further, which was trading at 16.49 to the dollar in June. Over the last year, the currency has lost approximately 48% of its value.

Erdogan pleads for support 

An economic slowdown ahead is posing another threat to the Turkish economy. Major banks from Goldman Sachs Group Inc. to Morgan Stanley revised this year's outlook for Turkey after faster-than-expected growth in the second quarter, and the risk of a near recession in Europe is one of the factors that can impede the economy in the rest of the year.

The central bank already cut down its benchmark rate last month by 100 basis points to 13% after being worried by “some loss of momentum”. Consumer prices could remain under pressure again if authorities unleash more stimulus ahead of elections, which are less than a year from now. For the time being, Turkish President Recep Tayyip Erdogan is pleading for “some patience and more support,” adding last week that inflation will start to decline at the start of the new year.

Both Erdogan and his PM Ahmet Davutoglu have announced their plans to run for the presidency in 2023, although the Turkish President has become less popular amid the soaring inflation that has been hitting the country.

  • Turkey
  • Recep Tayyip Erdogan
  • Turkish lira
  • Turkiye
  • inflation

Most Read

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Israeli police and rescue teams respond at the scene of a shooting attack where several people killed and injured in Jerusalem, Monday, Sept. 8, 2025 (AP)

Al-Quds shooting: 7 settlers killed, several critically injured

  • Politics
  • 8 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

Pro-'Israel' far-right Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
People protest against Israeli Prime Minister Benjamin Netanyahu during the 79th session of the United Nations General Assembly, in New York, on Friday, September 27, 2024 (AP)
Politics

'Israel' stops unfunded diplomacy ahead of UN, October 7 memorial

An Israeli Air Force fighter jet releases flares over the Gaza Strip, is seen from southern occupied Palestine, Thursday, May 8, 2025 (AP)
Politics

OIC summit draft: Israeli attack on Qatar risks normalization

People shout slogans and hold Palestinian flags while protesting during the twenty-first stage of La Vuelta cycling race from Alalpardo to Madrid, Spain, Sunday, Sept. 14, 2025. (AP)
Sports

Pro-Palestine protests force abrupt end to Vuelta a España finale

Damage is seen after an Israeli strike targeted a compound that hosted Hamas' political leadership in Doha, Qatar, on Wednesday, September 10, 2025 (AP)
Politics

Israeli regime faces growing isolation over Qatar strike: Reports

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS