At the end of May, the Turkish consumer price index (inflation) rose to 73.5% last year, the highest rate in the last 23 years, with the country’s citizens now facing an increase in food prices, energy, and President Erdogan’s “unorthodox” approach. .
The country’s food price index, which has 84 million citizens, has jumped 91.6% over the past year, according to the Turkish Institute of Statistics – a figure that highlights the difficulty these citizens are experiencing as supply chains, rising oil prices and Russia’s invasion of Ukraine accelerate global inflation.
For years Turkey has enjoyed rapid growth, but the president has over time refused to raise interest rates in order to slow down the rate of price increase, which has brought down the Turkish lira and weakened the purchasing power of the average Turkish consumer.
Erdogan has instructed the Turkish central bank – which is not its own sovereign before the president – to cut interest rates in the country even as Turkish inflation rises. Many leaders from the bank who opposed the basket of actions ordered by Erdogan were fired. Also, the bank has replaced chairmen like socks, when by the spring of 2021 the bank saw 4 different chairmen for two years.
The Turkish president has previously pledged to bring a new economic model on which the country will be based – the country will export wealth thanks to the cheap pound, which will allow the country to get rid of its budget deficit and thus get rid of inflation.
This did not happen. Instead, Turkey continues to have to pay for its energy resources in dollars, although it is now much more dollars due to the decline in the volume of the Turkish currency, which adds pressure to the local economy.
In addition, many economists believe that Turkish inflation is just beginning, and anticipate that it will continue to accelerate in the near future.
Erdogan’s heterosexual mammoths fight the agreed monetary policy are not expected to relieve the political inflation crisis, as it is expected to cross the 80% threshold during the third quarter of 2022.
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“The country will export wealth thanks to the cheap pound”
What did I read here?
03/06/2022
18:30
0
0I wonder if in the original sentence in Turkish there is any logic that has been lost in translation.
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