24-year high inflation is recorded with an 83% hike. The food, transport, and housing sectors are the worst hit. Turkish President Recep Tayyip Erdogan took a very unorthodox step last year where interest rates were cut to boost the economy. His policies include intervening in foreign exchange markets. The annual rate is estimated by independent experts of Turkey’s inflation research group to be 186.27%.
The sharpest peak is witnessed by the transportation sector with increased annual prices at 117.66%. This number is followed by the non-alcoholic drinks and food sector at 93%.
The interest rate is described as ‘the mother and the father of all evil’ by Mr. Erdogan. In a televised address on Monday, Mr. Erdogan said “We will build the century of Turkey together, hopefully by overcoming the inflation issue,”
Turkey’s record
It is costing more for the country to import goods as last year’s cut in interest from 19% to 14% has led to a fall in the value. The Turkish lira has recorded a new low of 18.56 against the US dollar.
According to former Turkish central bank chief economist Hakan Kara, this inflation is the sharpest since World War Two. As Mr. Erdogan is seeking another term in the next year’s election, this economic crisis and high inflation will be the main focused issue for him.
