Record-high Inflation in Istanbul

    Mar 17, 2022 @ 05:56 AM / by Kathy Lam

    866.Istanbul

    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.

    Continued Inflation

    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.

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    Topics: Currency Volatility, Cost of Living, Localization, Global Mobility, Currency Devaluations, exchange rates, Hyperinflation, Global Compensation, Istanbul, Turkey, Long-Term Assignment, Inflation, Compensation

    Kathy Lam

    Written by Kathy Lam