Istanbul, Turkey – Istanbul’s annual retail inflation rate surged to its highest level since December 2022, reaching 82.2% in May, according to data published by the Istanbul Chamber of Commerce. The monthly increase was 3.59%, down from 4.89% in April.
The sharp rise in retail prices is attributed to the continued increase in food and energy costs, which have been exacerbated by the ongoing geopolitical tensions and supply chain disruptions. Vendors at the Friday Bazaar market in Istanbul, one of the city’s largest and busiest markets, are feeling the pinch of the rising inflation.
“It’s getting harder and harder to make ends meet,” said Ayse, a clothing vendor. “The prices of everything are going up, and it’s difficult to keep up with the demand.”
According to economists, the inflation rate is expected to decline in the second half of the year after reaching a peak in May. “The inflation rate is expected to slow down in the coming months as the government’s measures to curb inflation start to take effect,” said Dr. Mehmet Besimoglu, an economist at Istanbul University.
In Essence
Istanbul’s retail inflation has reached its highest level, with an annual rate of 82.2% in May. While the monthly increase has slowed down, the inflation rate is expected to remain high in the coming months, impacting vendors and consumers alike.
