Istanbul bread prices soar by 30% amid Turkey's rampant inflation crisis
12:59 PM EDT, May 10, 2024
The Istanbul Chamber of Commerce has decided to increase the maximum price of bread in the city by over 30 percent, as reported by the Turkish news outlet Duvar. This move comes in response to the soaring cost of living, leaving many Turkish citizens struggling to make ends meet.
According to the new regulation set by the Istanbul Chamber of Commerce, the price ceiling for 7 oz (approximately 200 grams) of bread has risen by 31.25 percent, reaching 10 Turkish Lira ($1.24). This hike is a stark reflection of the country's rampant inflation, given bread's staple status in the Turkish diet.
The adjustment in bread prices was necessitated by the rising costs of essential ingredients, such as flour and yeast, alongside increases in labor and energy expenses. Companies have been vocal about their severe challenges due to escalating operational costs.
The situation underscores a broader economic predicament, with millions of Turkish citizens finding it increasingly difficult to afford necessities.
Turkey's battle with inflation isn't new. The country has faced double-digit inflation consistently since mid-2018. Efforts to tame these spikes through a series of aggressive interest rate hikes by the Central Bank saw a momentary deceleration in consumer price index (CPI) growth around 2022 and 2023. However, the current rate of 69.8 percent remains significantly above the bank's 5 percent annual target.