Food price hikes feared in Turkey after currency slump
Turkish social media swirled with rumors Monday of possible bread price hikes following a record slide in the nation’s currency, and economist say the anxiety could add to inflationary pressures.
ISTANBUL — Turkey’s lira fell 12% in value last week, reaching record lows against major currencies after the Central Bank further cut the nation’s key interest rate Thursday. The move has since spurred fluctuations in exchange rates that Turkish consumers fear could lead to price hikes on staple food products like bread.
The term “Ekmek 4,” meaning “Bread 4 liras,” was trending on Turkish Twitter Monday as unsubstantiated rumors swirled over a potential rise in bread costs. A loaf currently sells for between 1.25 and 2.5 liras, depending on location.
“It’s impossible for bakeries to sell bread with the same prices as before because 50 kilos of flour was 200 liras last week, but this week it’s 380 liras due to the new exchange rates,” Cihan Kolivar, chairman of the Bread Producers Employers Union in Turkey, told Al-Monitor.
Kolivar continued, saying new flour prices significantly diminished profits and most bakeries will need to change prices to remain operational.
