{"id":1506,"date":"2024-09-05T12:48:00","date_gmt":"2024-09-05T09:18:00","guid":{"rendered":"https:\/\/icdst.org\/blogaa3523f0cb2b3b8b30536afde2339ec0f82bf760\/?p=1506"},"modified":"2024-09-27T11:56:29","modified_gmt":"2024-09-27T08:26:29","slug":"turkeys-death-is-approaching-in-months-of-high-inflation-500-inflation-will-become-the-new-norm","status":"publish","type":"post","link":"https:\/\/icdst.org\/blog\/index.php\/2024\/09\/05\/turkeys-death-is-approaching-in-months-of-high-inflation-500-inflation-will-become-the-new-norm\/","title":{"rendered":"Turkey’s death is approaching in months of high inflation: 500% inflation will become the new norm"},"content":{"rendered":"\n
\n

Inflation reached 69.8% year-on-year in April in Turkey, compared to 68.5% in March, according to official data published this Friday. For several months, the Turkish president has been trying, in vain, to stem the inflationary scourge in the country. This lack of results cost his party a debacle in the last municipal elections.<\/p>\n<\/blockquote>\n\n\n\n

Unstoppable. Once again this month, Turkish inflation continued to rise, to 69.8% over one year, compared to 68.5% in March, according to official data published this Friday. According to the National Statistics Office (T\u00fcik), month-on-month consumer price inflation was 3.18%, compared to 3.16% in March.<\/p>\n\n\n\n

Although high, the official figures could even significantly underestimate reality.  A group of independent Turkish leading economists (Enag) estimates that inflation reached more than 124%, year-on-year in April, an increase of 5 points over one month.<\/p>\n\n\n\n

According to official data, the increase in prices particularly concerns education (+103.9% over one year), hotels and restaurants (+95.8%), transport (+80.4%) and health (+77.7%). Also, the domestic producer price index increased by 3.60% month-on-month in April, for an annual increase of 55.66%.<\/p>\n\n\n\n

For the record, the Turkish Central Bank raised its interest rates from 8.5% to 50% between June and March 2024. This is equivalent to an increase of 3,650 basis points. But for now, this tightening policy has not made it possible to stem inflation, fueled by the almost continuous devaluation of the Turkish lira.<\/p>\n\n\n\n

The central bank has also reportedly spent more than $200 billion to try to support the national currency over the past two years. The new leaders of the institution have decided to let the national currency weaken with the aim of relieving the pressure on its reserves. As a result, the Turkish currency fell by more than 37% between January 2023 and January 2024.<\/p>\n\n\n\n

At the end of January, the monetary institution declared that its high key rate\u00a0\u201cwill be maintained as long as necessary\u00a0\u00a0\u201d.<\/em>\u00a0The institution also specified that new increases could take place\u00a0\u201c\u00a0\u00a0in the event of significant risks (…) on the inflation outlook\u00a0\u00a0\u201d.<\/em><\/p>\n\n\n\n

Conclusion<\/p>\n\n\n\n

Inflation in Turkey surged to 69.8% year-on-year in April, up from 68.5% in March, according to official data. Despite efforts by the Turkish president and the central bank, which raised interest rates significantly and spent over $200 billion to support the lira, inflation continues to rise. Independent economists estimate inflation could be as high as 124%. The high inflation rates have impacted sectors like education, hotels, restaurants, transport, and health, and have led to a weakening of the Turkish lira.<\/p>\n","protected":false},"excerpt":{"rendered":"

Inflation reached 69.8% year-on-year in April in Turkey, compared to 68.5% in March, according to official data published this Friday. For several months, the Turkish president has been trying, in … <\/p>\n","protected":false},"author":1,"featured_media":1134,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[206,209],"tags":[],"class_list":["post-1506","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-sponsored-post"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/posts\/1506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/posts"}],"about":[{"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/comments?post=1506"}],"version-history":[{"count":0,"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/posts\/1506\/revisions"}],"ICDSTCMS:featuredmedia":[{"embeddable":true,"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/media\/1134"}],"ICDSTCMS:attachment":[{"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/media?parent=1506"}],"ICDSTCMS:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/categories?post=1506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icdst.org\/blog\/index.php\/ICDSTCMS-json\/ICDSTCMS\/v2\/tags?post=1506"}],"curies":[{"name":"ICDSTCMS","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}