Annual inflation in Türkiye rose to 68.5 percent in March, CNBC reported. In February the value was still 67.1 percent. The report cites new data from the Turkish Statistical Institute published on Wednesday.

Annually, the education sector recorded the highest increase with inflation of 104 percent compared to the previous year. This was followed by the restaurant sector with 95 percent and the healthcare sector with 80 percent.

Doubling the minimum wage has the effect of raising inflation

According to the report, a significant part of the inflation in recent months is due to a sharp increase in the minimum wage. This figure increased to 17,002 Turkish liras (around $530 or just under 500 euros) per month in January. That was a 100 percent increase compared to 2023.

Türkiye is currently making considerable efforts to combat price increases with interest rate increases. The central bank last raised the key interest rate from 45 percent to 50 percent in March.

The key interest rate will probably have to continue rising

Economic experts expect the Turkish central bank to raise official interest rates further. Nicholas Farr, an Eastern European economist at Capital Economics in London, said “further monetary tightening is on the way,” according to the report. The Turkish government must also respond to current challenges with its fiscal and budget policy.

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