While Official Figures Claim Turkey’s Inflation Rate Is 85%, Third-Party Stats Say It"s Closer to 200%
Inflation has skyrocketed in Turkey as official figures from the Turkish Statistical Institute (Tüik) show the country’s inflation rate topped 85.5% year-on-year. The inflation rate in Turkey has risen for 17 consecutive months and last month it reached a 24-year high. Turkey’s Interest Rate Remains Low, While Inflation Runs Rampant
Turkey, the transcontinental country located in Western Asia has been suffering from financial hardship as the region’s economy is in dire straits. On Nov. 3, 2022, the Turkish Statistical Institute (Tüik) published the country’s official inflation rate figures and stats show the rate reached 85.5% year-on-year.
Reports further indicate that the cost of living in Turkey has risen dramatically and the Tüik report shows that food prices in Turkey climbed 99% higher year-on-year. Housing and rent jumped by 85% for Turkish residents. On Oct. 20, 2022, Turkey’s central bank and Turkish president Recep Tayyip Erdogan cut the region’s benchmark bank rate by 150 basis points (bps).
It was the third consecutive month of cuts according to stats and Erdogan explained in September that interest was an enemy. “My biggest battle is against interest. My biggest enemy is interest,” Erdogan stated in late September. He also noted at the time that the interest rate needs to “come down further” despite the red-hot inflation.
The International Monetary Fund (IMF) has also urged Turkey to raise the country’s benchmark rate. Reports say that delegation was sent from the IMF to Ankara and Istanbul to get people from both the public and private sectors to find a solution to Turkey’s economic turmoil.
“Policy rate cuts in late 2021 added to existing vulnerabilities and were followed by lira depreciation and high inflation,” the IMF said. “The mission recommended early policy rate hikes accompanied by moves to strengthen the central bank’s independence. Such moves would help reduce inflation more durably.
Despite the Turkish Statistical Institute’s official inflation numbers, third-party figures tell a whole different story. Economists stemming from the Inflation Research Group (Enag) detail that Turkey’s annual increase in inflation is closer to 185.5%. Researchers say the Enag Inflation Index has dynamic attributes that adjust more quickly to changes in Turkish consumption habits. Tags in this story 185%, 85%, Bank Rate, Cut Rates, Enag Inflation Index, Erdogan, IMF, inflation, inflation rate, Inflation Rates, Inflation Research Group (Enag), International Monetary Fund (IMF), Lower Rate, official inflation numbers, Researchers, Tayyip Erdoğan, Third Party, Turkey, Turkey inflation, Turkish inflation, Turkish Statistical Institute
What do you think about Turkey’s skyrocketing inflation rate and president Recep Tayyip Erdogan suppressing interest rates? Let us know what you think about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Silver Rallies 7% Rising Past $20 per Ounce, US Mint Says Fabricators Are "Struggling to Keep up With Demand" ECONOMICS | 8 hours ago Nigerian Currency Redesign Controversy: Naira Slips by Almost 20%, Experts See Exchange Rate Reaching 1,000:1 USD Before Year End ECONOMICS | 15 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleNew Digital Collectible Collections Art Gobblers and Keepers Propel NFT Sales 56% Higher This Week Next articleGoldman Sachs Launches Data Service to Help Investors Analyze Crypto Markets Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether