The cost of living in Turkey’s most populous city of Istanbul has increased by 50.18 percent over the last year, according to a new report published by the municipality’s Istanbul Planning Agency.
The city of 16 million has been hard hit by Turkey’s soaring inflation of over 21 per cent, according to government figures, with the prices of basic goods catapulting.
The volatile lira, which hit record lows against the U.S. dollar and euro last week, is driving prices higher, making fuel, imports, fuel, and everyday goods more expensive in the country, which relies on imported raw materials. Rent has catapulted, particularly in large cities.
Rent in Istanbul has seen a 71.43 percent increase since last year, according to the report, while liquified natural gas and flour have registered a price hike of 102 and 109 percent, respectively.
Eggs, red meat and bread prices in the megacity have increased by 35-40 percent during the same time span, while toilet paper has recorded a 90 percent hike.
The Financial Times last month reported that Turkey could be heading towards hyperinflation should President Recep Tayyip Erdoğan refuse to abandon his unorthodox view of on maintaining low interest rates.
The Turkish president has been ordering the central bank to cut borrowing costs – the benchmark rate now stands at 15 percent and he has sacked three central bank governors in just over two years, along with a majority of members of the bank’s rate-setting committee.