Turkey’s annual inflation has been soaring to record-high levels since the currency devaluation triggered by interest rate cuts last year. In view of the situation, AIRINC did a special cost-of-living survey on Istanbul last month to capture the impact.
Cost of Living Survey
In our most recent survey in February 2022, we found a significant price increases in our market basket items across all categories from November 2021. Among the categories, Transportation saw the largest increase, followed by Household Supplies & Services and Personal Care, while Communication Services, Clothing and Recreation & Entertainment saw smaller (yet still significant) increases.
Despite the government’s attempts to control inflation, their success was short-lived, as Turkey suffered a second shock to its economy when Russia began its invasion of Ukraine in late February. Inflation in Turkey is likely to keep soaring, as global energy and commodity prices rise amid the Russia-Ukraine crisis. AIRINC will continue to monitor the situation in Istanbul and will conduct another survey in May to update our data.