According to the latest report published by the Organization for Economic Co-operation and Development (OECD), Turkey’s April food inflation rate increased to 31.9 percent, more than 30 percent higher than the average in European Union (EU) countries, Euronews reported on Thursday
The average April inflation in other EU member states was 1.7 percent – 2.3 percent in OECD countries and 0.9 percent in G7 countries.
Turkey’s energy inflation in April was 17.3 percent, also much higher than that of EU, OECD, and G7 countries, which were 4.8, 3.8, and 3.1 percent respectively.
The food price increase in Turkey subsequently contributed 7.3 percentage points to the annual inflation rate.
In April, the percentage variation for the same period of the previous year was 19.5 percent.
Turkey’s ruling party influences economic recession
Economy analysts claim that Turkey is experiencing its second economic recession under the rule of Turkish President Recep Tayyip Erdogan’s ruling Justice and Development Party (AKP). The last recession was in 2008, as a result of the mortgage crisis in the United States (US).
This time, however, the cause for Turkey’s current slump is not economic, but political, according to experts. The row with the US over jailed American Pastor Andrew Brunson prompted a severe sell-off of the Turkish lira, pushing it to an all-time low against the US dollar.
Gross domestic product (GDP) in the fourth quarter fell by a seasonally adjusted 2.4 percent compared to the previous three months, according to the Turkish Statistics Institute.
The dip followed a reduction of 1.6 percent in the third quarter. Two consecutive quarter-on-quarter contractions in economic output are widely considered to be the definition of a recession.