Galloping inflation in Turkey continues unabated. In June, the cost of living rose 78.62 percent from the same month last year, the country’s national statistics office said in Ankara on Monday. In May inflation was around 74 percent.
Transport and groceries in particular rose sharply year-on-year in June. Producer costs also continued to rise: according to the statistics office, prices received by producers for their goods rose by about 138 percent in June over the year. Compared to the previous month, this is an increase of about 6.8 percent. Producer prices usually flow with a delay and are partly incorporated in consumer prices.
Inflation up 175% yoy
The opposition accuses the government of obscuring inflation figures and assumes a significantly higher rate. The Istanbul-based inflation research group ENAG even estimated inflation for June at 175.55 percent year on year.
Inflation in Turkey is determined by several factors. The weak national currency, the lira, has long been driving price increases as goods imported into Turkey become more expensive. The prices of many commodities are also rising, not least because of the Russian attack on Ukraine.
According to many economists, the Turkish central bank is not fighting high inflation with sufficient determination. In fact, monetary authorities have eased their monetary policy since last summer. According to current economic theory, a rise in interest rates can counteract inflation.
Central bank follows President Erdogan’s line
Turkish President Recep Tayyip Erdogan, on the other hand, argues that high interest rates cause inflation. The central bank is following Erdogan’s lead and has so far refrained from raising interest rates. It has maintained the key rate at 14 percent since January.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
