Turkey: Food Inflation in Turkey Marches Higher

Food inflation in Turkey is the highest it has been in decades. Average food prices in May were up 92 percent from a year ago. One of the leading reasons behind higher food prices is the rising cost of on-farm inputs, such as fuel, fertilizer, and feed. Other contributing factors include a weakening currency, supply chain challenges, and economic uncertainties. The combined effect of all of this has caused producer prices to shoot up 155 percent in May compared to the same time last year. Farmers are reportedly struggling to turn a profit since costs are rising faster than their ability to raise farmgate prices. Although the government has intervened to counter inflationary pressures, Turkey’s food prices are expected to climb higher for the foreseeable future.