Drivers of Food Price Inflation in Turkey
Food price inflation has increased persistently in recent years in Turkey with a widening divergence from international food price inflation. The study analyzes the main inefficiencies in the Turkish agricultural sector through the lens of food pri...
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| Format: | Report |
| Language: | English |
| Published: |
Washington, DC:
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099000005242255496/P17030605138760630b3dd0668d9de5089e http://hdl.handle.net/10986/37481 |
| Summary: | Food price inflation has increased
persistently in recent years in Turkey with a widening
divergence from international food price inflation. The
study analyzes the main inefficiencies in the Turkish
agricultural sector through the lens of food price formation
and discusses the policy actions needed to strengthen the
sector’s competitiveness. The results of the analysis show
that inefficiencies in agricultural markets, augmented by
macroeconomic factors, have put food prices on an upward
trajectory. The report findings underscore the need to move
away from short-term policy responses to a broader policy
strategy aimed at stabilizing prices through increased
productivity and improved market linkages. Section one
presents an overview of food price dynamics across different
agricultural commodities and regions. Section two analyzes
various factors that drive food price inflation in Turkey at
the national level, grounded in econometric analyses and a
literature review. Section three includes an in-depth
analysis of regional price formation and transmission for
tomatoes, green peppers, and dry onions. Section four
presents policy recommendations aimed at tackling the
existing inefficiencies in Turkey’s agricultural sector that
are contributing to rising food prices. |
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