Inflation in Turkey: Many countries including America, England, Europe and India are suffering from increasing inflation. Especially America and England are facing the threat of recession. Inflation in America is more than 8%. In India it is more than 7%. In Turkey it has reached above 80%. This gives an idea of the difficulties of the people there.
Consumer prices in Turkey rose 85.51% in October. This is 3.54% more than in September. Turkish Statistical Institute has told this. Inflation in Turkey is the highest in 24 years. Experts say that the actual inflation is higher than the official data.
The Independent Inflation Research Group said on Thursday that the inflation rate in Turkey has reached 185%. The special thing is that while Russia-Ukraine war is the main reason for increasing inflation in most countries including America, England, India, the same reason in Turkey is the government’s policies.
Economists say the main reason for inflation in Turkey is President Recep Tayyip Erdogan’s belief that higher interest rates push up commodity prices. Economists generally believe that raising interest rates helps in controlling inflation.
This is the reason that when central banks around the world are raising interest rates, Turkey’s central bank is reducing interest rates. Last month, Turkey’s central bank cut interest rates for the third time in a row. It reduced it to 10.5% in line with the President’s economic policy. Turkey’s president has indicated further cuts in interest rates. From this it is believed that the interest there may soon come in single digit.
The prices of many things in Turkey have more than doubled compared to last year. Due to this, the people there are facing a lot of problems. Turkey has also been hit by drought. This has affected the supply. The supply of many essential things has come down drastically.
Elections are due in Turkey next year. President Erdogan defended his economic policies on Wednesday. He said that he hopes that his economic model, which promotes growth, investment, employment, will be implemented by other countries as well. He said that the relationship between inflation and interest rate is understood by many agencies and organizations of the world including the United Nations.