inflation
Turkey cuts VAT on basic foodstuffs
Customers at Ortakcilar street market in Istanbul. Goods are becoming more and more expensive in Turkey. In January, the inflation rate jumped to just below the 50 percent mark. Photo: Francisco Seco/AP/dpa
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Inflation in Turkey keeps rising. In view of the rising prices, people’s resentment is growing. Erdogan now announces that he will reduce VAT on staple foods.
Turkish President Recep Tayyip Erdogan has announced a reduction in VAT on staple foods from eight to one percent in view of the high inflation in his country.
He expects prices for rice, meat, fruit and vegetables, dairy products and eggs to fall by 7 percent from Monday, Erdogan said in a televised speech. The tax on flour and bread is already one percent.
Inflation of 48.7 percent
Inflation in Turkey had recently accelerated from an extremely high level. According to official figures, consumer prices rose by 48.7 percent in January compared to the same month last year.
The country is struggling with a currency crisis. The lira continues to lose value, which makes imported goods more expensive. At the turn of the year, energy prices had exploded. Electricity prices for households were raised by around 50 percent. Food and transport had also become increasingly expensive recently.
The resentment grows
In view of the situation in the country, people’s displeasure is also growing. There have been minor protests recently. The largest opposition party, the CHP, warned on Wednesday that many people would become poor.