ANKARA (Turkey) -- Turkey's annual inflation climbed at the fastest rate in 19 years. It jumped to 36.08% in Dec, according to official data.
According to the Turkish Statistical Institute, the consumer price index rose by 13.58% in December compared to the previous month. This further erodes people's purchasing power. According to data, there was a 43.8% increase in food prices each year.
The annual inflation rate was at its highest level since September 2002. Two months later, President Recep Tayyip Turkey's ruling party was in power in November 2002.
Erdogan spoke after a Cabinet meeting and promised to return to single-digit inflation.
Erdogan spoke out about Monday's inflation rate, saying that "Whatever the cause, we regret that our people are faced with such an image." "We are determined break the neck and bring inflation back to single digits as quickly as possible.
The country has seen an increase in inflation, while the Turkish Lira has fallen to new records due to the fact that the central bank cut the key interest rate in September by five percentage points. This was under pressure from Erdogan.
Due to the weakening lira, imports, fuel and everyday goods have become more expensive. This has caused many people in the country of 84 million to struggle to purchase food and basic goods. To protect their savings, many have bought foreign currencies and gold.
Erdogan announced last month that he would take steps to protect lira depositors against volatility following the Turkish currency's record low of 18.36 against USD. Although the lira gained some ground after the announcement, it has lost some of its gains. Last year, the lira lost around 44% to the dollar.
Erdogan insists that borrowing costs be reduced to stimulate growth. However, economists believe that higher interest rates are the best way to control soaring prices.
Erdogan earlier Monday announced that Turkey's exports grew by 32.9% in 2021 to reach "a record" $225.4 Billion.
Erdogan addressed a group exporters in a televised speech. He stated that the figure represented a 7.8% decrease of Turkey's trade deficit. Erdogan stated that Turkey would increase its export target of $250 billion by 2022.
The independent Inflation Review Group, which is made up of former government officials and academics, has put the annual inflation rate at 83%. According to it, consumer prices increased by 19.35% in December over November.