The MEB increased by 52 percent yearly and reached TRY 878 in March 2022. The monthly inflation rate reached 61 percent and the Turkish Lira was depreciated and USDTRY exchanged for 14.6. The Ukrainian war increased the energy costs globally, affecting Türkiye adversely.
The devaluation of the Turkish Lira against the US$ and the increase in energy prices put additional pressure on the already high inflation rates as Türkiye relies on imported energy, primarily from Russia. As of March 2022, the inflation rate reached 61 percent whereas the food inflation is 70 percent. The war also affected the trade and tourism in Türkiye as both Ukraine and Russia have the highest shares. On the other hand, with the contribution of the devaluation of TRY, the export volume of Türkiye increased significantly at 25 percent between February 2021 and February 2022.
