Inflation in Turkey Rises to 68.5% in March

Official data released today, Wednesday, indicated that "the annual inflation rate in Turkey has risen to 68.5% in March," slightly below expectations following the significant losses of President Recep Tayyip Erdoğan's party in local elections, attributed in part to rising living costs. The Turkish Statistical Institute reported that monthly inflation was 3.16%, down from 4.53% in February and 6.7% in January, primarily due to the diminishing impact of salary adjustments and price increases at the beginning of the year. A Reuters survey expected annual inflation to rise to 69.1% in March, with a monthly increase of 3.5%. The annual rate is expected to decline to 43.75% by the end of 2024. Erdoğan's ruling Justice and Development Party has lost control of several regions and suffered a heavy defeat to the main opposition parties in the major cities of Istanbul and Ankara on Sunday, marking its worst electoral performance in over two decades. Analysts stated that voters largely punished the party due to the ongoing cost of living crisis.