Inflation in Turkey rose to almost 79 percent in June – Economy

President Erdogan’s peculiar economic policy is behind the high inflation figures.

in Turkey inflation, i.e. the rise in consumer prices, accelerated to almost 79 percent in June, according to the country’s statistical authorities.

June’s inflation figure of 78.6 percent is the highest in more than 24 years. In May, Turkey’s inflation was 73.5 percent.

According to the statistics authorities, inflation was especially accelerated by the increase of transport costs by more than 120 percent from a year ago. Non-alcoholic drinks were said to have become more expensive by more than 90 percent from a year ago.

The background of the high inflation figures is the Turkish president Recep Tayyip Erdogan idiosyncratic economic policy. According to Erdogan, high interest rates lead to higher prices, which is why he forced the country’s central bank to cut interest rates last year.

According to economists, Erdogan’s unconventional economic policy has worsened the effects of Russia’s attack on Ukraine in Turkey. The Russian attack has increased inflation figures worldwide, as food and energy prices have risen significantly.

Although Turkey’s inflation figures are high, many Turkish economists are suspicious of them and estimate the real inflation figures to be even higher.

According to an estimate published by the ENAG group of independent economists on Monday, consumer prices were 175 percent higher in June than a year ago.

The Chamber of Commerce of Turkey’s largest city, Istanbul, on the other hand, estimates that annual inflation in the city was 94 percent.

“Nobody trusts Turkey’s official statistics anymore,” an economist at Blue Bay Asset Management Timothy Ash said news agency AFP.

“No one expects these numbers to be answered with any kind of credible action,” Ash continued.

In a survey published in Turkey last week, 69 percent of respondents said they trusted inflation figures from the unofficial ENAG group, while only 24 percent of respondents said they trusted the government’s official inflation figures.

By Editor

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