The inflation rate in Turkey rose to 61.14 percent in March compared to the same month last year. This was announced by the National Statistics Office in Ankara on Monday. In February, the increase had been around 54 percent. Economists assume that the inflation rate will still be more than 50 percent at the end of the year - among other things because of the sharp rise in energy prices.

Fuel prices rose particularly sharply. Transport costs, which include gasoline and diesel fuel, are up by around 100 percent year-on-year. But food prices also continued to rise. According to the statistics authority, producer prices even rose by around 115 percent year-on-year in March.

Turkey is particularly feeling the effects of the rise in oil and gas prices caused by the Russian war of aggression on Ukraine. The country imports almost all of its energy needs. Russia and Ukraine are also important suppliers of grain and sunflower oil. Edible oil in particular has recently become much more expensive. In April, the value-added tax on some products such as hygiene articles was reduced.

The main reason for the sharp rise in consumer prices is considered to be the loose orientation of Turkish monetary policy. Under pressure from President Recep Tayyip Erdogan and against the advice of experts, the Turkish central bank lowered the key interest rate several times last year, most recently to 14.0 percent. The AKP leader is an avowed opponent of high interest rates because, contrary to common economic doctrine, they would promote high inflation. In addition, the weak national currency, the lira, has been driving up prices considerably for some time, as it makes imported goods more expensive.