Turkey has become so expensive primarily due to extremely high inflation, which peaked at around 85% in 2022 and remained above 50% in subsequent years, causing prices for goods and services to surge dramatically. The Turkish lira has lost significant value (over 80% in 5 years), making imports and many everyday items much more costly. This inflationary pressure is worsened by economic policies such as cutting interest rates when other countries were raising them to control inflation, leading to further currency devaluation and rising costs. Additional factors include rising input and service costs pushing up accommodation and tourism expenses, making Turkey comparable to or more expensive than some traditionally pricier tourist destinations like Dubai, Spain, or Greece. Domestic economic difficulties, government interference in monetary policy, and a lack of investor confidence have contributed to price increases and lower purchasing power for locals, while some foreign investors and wealthy buyers have driven up property prices. The overall effect has been a sharp rise in living and travel costs within Turkey, affecting both residents and tourists alike.
In summary, Turkey's high expenses result from a combination of rampant inflation, currency depreciation, economic policy decisions, rising costs, and varying market dynamics impacting everyday prices.
