What does double-digit inflation mean for Turkey?
The accelerating pace of Turkey’s inflation threatens significant erosion in most forms of income on which the country’s population lives.
![TURKEY-LIRA/ Boards showing the currency exchange rates of the U.S. dollar and the Euro against Turkish lira are on display at a currency exchange office in Istanbul, Turkey, January 11, 2017. REUTERS/Murad Sezer - RTX2YFYR](/sites/default/files/styles/article_hero_medium/public/almpics/2017/03/RTX2YFYR.jpg/RTX2YFYR.jpg?h=f7822858&itok=u2JBpLDG)
Turkish consumer inflation has exceeded 10%, climbing back to double digits after 58 months. The factors pushing prices up are unlikely to subside in the coming months, meaning that a double-digit overall inflation at the end of the year is now a strong prospect for the country.
The Consumer Price Index, which denotes the change in the prices of goods and services that consumers buy, was up 10.1% year on year in February. The increase was higher in some categories and lower in others. In food and housing, which account for 24% and 15% of the consumer basket, respectively, the increase stood at 8.7% and 7.4%. Meanwhile, in the transport and tobacco-alcohol categories, which make up 14% and about 6% of household budgets, respectively, inflation stood at 18% and nearly 22%.