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INFLATION IN TURKEY

Updated: May 25, 2023


Istanbul shops
Turkey


INFLATION IN TURKEY HAS GONE THROUGH THE ROOF! WHY?


The inflation in the Turkish economy has skyrocketed over the last few months. Here are some examples, and why.

In the summer of 2023, inflation in Turkey is estimated to reach its highest level since the 1990s. A combination of factors such as a weakening Turkish Lira, increased costs of imports, and rising interest rates caused this.

The rise in prices has impacted consumer goods and services, with food items and gasoline particularly affected.

Prices of basic necessities like bread, milk, and eggs have increased significantly in recent months. The cost of housing has also increased due to higher demand and limited supply. This it seems is based on the Ukrainian and Russian influx of refugees here. Russian Oligarchs are parking multi-million dollar yachts off the coastline of Turkey and investing Russian rubles into the housing market throughout the Turkish-Mediteranian coastline, creating a housing bubble, the likes of which have not been seen in history.

The Turkish government is taking steps to address the problem by introducing tighter regulation on capital markets, encouraging domestic production, and reducing taxes on exports. However, it remains to be seen if these measures will be enough to combat the high inflation rate.


With the Turkish presidential election right around the corner, the current government is enticing voters with higher minimum wages, free refrigerators, free housing for the poor and earthquake victims, and ease of access to housing loans. But is this enough?


The Current president, Recep Erdogan, has promised a lot of people a lot of things, and for the sake of the Turkish people, we hope he delivers.

If you are traveling to Turkey in 2023, it would be wise to keep an eye on the current inflation rate so you can budget accordingly for your trip expenses. Things like beer, a cup of coffee, a liter of gasoline, and rental properties have gone up 400% in some towns, and the prices keep rising.

The vacationer isn't the only one affected as the rental price for a Turkish family has gone up so high that they can't afford to stay in the cities on the wages they earn here.


The minimum wage is 45 Turkish lira per hour at the moment, which equates to about $2.00 US per hour, according to the website www.timedoctor.com, and housing has risen 400% to approx. $800 to $1000. US Dollars per month for a two-bedroom, one-bath apartment according to Sahibinden.com website which is the most popular way to find things in Turkey. (Kind of like the classifieds in America)

Turkey is currently experiencing an inflation rate that is higher than the average inflation in the European Union. In fact, the European Union has seen the inflation rate go down by almost 3% in the last few months.

It is expected that this high inflation rate will continue through 2023, meaning prices for goods and services in Turkey may increase substantially over the year. This could push many Turkish people away from the holiday towns and lead to a deficit in the workers who run the services industry here like wait staff and other lower-income jobs.

Inflation in Turkey has been increasing steadily over the past few years, with the current inflation rate estimated to be around 300%. This is significantly higher than the average inflation rate of many other countries, including the US and it's having a noticeable impact on the prices of goods and services in Turkey.

For travelers to Turkey, this means that their expenses such as accommodation, food, and transportation costs could be more expensive compared to what they were expecting. Depending on how long you are planning to stay in Turkey, this could have a major effect on your overall budget for the trip.


During our stay here in 2020, we spent an average of $30.00 US dollars a day on food and accommodation now that price for the exact same food and accommodations is up to $140.00 US dollars per day! If you think that is still affordable, you are right.

But think of it in terms of the local economy, and who's going to bring you your Effes beer? Then it gets real.

It is important to note that this high inflation rate does not mean that traveling in Turkey is no longer affordable; rather, it just means that travelers need to be aware of it and plan accordingly.


It seems that the days of ultra-cheap vacations to Turkey are over. This is sad because the entire economy is built on tourism. As recently as 2018 the GDP counted on almost 8% of tourism lira spent here. Now it's already down to 3% in 2023.


The Turkish government has implemented several measures in an attempt to combat rising inflation and stabilize the economy, but these have yet to show significant results.




I will update this article after the elections and let you know of any changes.

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