Unparalleled since 1997. Report inflation in Turkey, at 85.5%.

Inflation continues to soar in Turkey the place it reached its highest degree in 25 years, at 85.5% over one 12 months in October, fueled by hovering power and meals costs, in accordance with official information launched Thursday.

The earlier annual inflation document dates again to 1997 with a rise of 85.67% over the 12 months.

Thursday morning, the Turkish lira remained steady on the announcement of those new figures because the rise was anticipated: the nationwide forex has already misplaced greater than 28% in opposition to the greenback since January 1, after having melted by 44% in 2021.

In response to Tuik (the official statistics workplace), the objects most affected, as a result of they’re linked to the worth of power, are transport, up 117% over the past twelve months, meals (+99%) and housing (+85%), which makes every day life significantly troublesome for Turks.

These official figures are, nonetheless, disputed by unbiased economists from the Inflation Analysis Group (Nage) who declare that costs have risen 185% over the 12 months – together with 115% since January 1.

Practically half (48%) of workers obtain the minimal wage, which quantities to 5500 Turkish liras, or lower than 300 {dollars}.

Regardless of two huge will increase within the minimal wage this 12 months – +50% in January and +30% in July – inflation is a sizzling matter within the nation a number of months earlier than the presidential election scheduled for June 2023, through which the president Recep Tayyip Erdogan shall be a candidate for his succession.

However the president’s financial coverage encourages inflation.

The Central Financial institution lowered once more in October, for the third consecutive month, its major key price from 12% to 10.5%.

Opposite to classical financial theories, President Erdogan asserts that top rates of interest promote inflation.

The Head of State, who says he favors progress and exports over worth stability, usually guarantees that Turkey will “overcome” the issue of inflation after the New 12 months.

On Wednesday, the president even congratulated himself on the great well being of the Turkish economic system: “Thank God, the wheels of our economic system are turning. Our financial mannequin, which we have now summarized as progress via funding, employment, manufacturing, export and present account surplus, is bearing fruit”.

AFP