June 29, 2022

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Inflation in Turkey has peaked since Erdogan came to power

Inflation in Turkey has peaked since Erdogan came to power

Dubai, United Arab Emirates (CNN) – Annual inflation in Turkey peaked last December after Turkish President Recep Tayyip Erdogan came to power, according to official figures.

Data from the Turkish Statistics Office on Monday showed that annual inflation rose to a 19-year high in December, and that the fall in the lira to 13.58% over the previous month was due to higher import costs.

Data shows that consumer prices rose by 36% in December 2021 compared to last year, the highest annual inflation rate since September 2002 and since Erdogan took office as Prime Minister.

The increase was due to a 54% increase in transportation costs year-on-year, a 43.8% increase in food and beverage prices, and a 40% increase in the prices of home and hospital equipment compared to the previous year.

The Turkish lira lost more than 40% of its value against the US dollar last year, due to Erdogan’s insistence on the Turkish central bank’s unusual policy instead of raising interest rates due to rising prices.

In December, Erdogan unveiled a plan to support the lira, which includes a new type of lira savings account that protects deposits against currency devaluation and urges companies and individuals to protect the lira.

“We have been working for some time to free the Turkish economy from the cycle of high interest rates and high inflation and to bring it on a growth path through investment, employment, production and exports,” Erdogan said on Friday. Talk to the Anatolian Lions Businessmen’s Association (ASKON) in Istanbul.

“The infrastructure we have built in our country over the last 19 years and the agility of our people, including our entrepreneurs and employees, is our greatest strength,” he added.

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He continued, “For a long time, there was an economic system in the world established by developed countries, based on different practices and double standards for themselves, developing countries and less developed countries.”