Turkish inflation scares supporters of ErdoganOctober 4, 2018
Consumer inflation in Turkey has reached its highest level in the last 15 years, heightening concerns about a recession amid dissatisfaction with the illiterate management that government of the 17th largest economy in the world is implementing.
According to data published by the Institute of Statistics of Turkey, inflation in September reached 24.52% compared with the previous year, which is 6.3% more than last month. This surge has become a slap in the face to the Minister of Economy of Turkey Berat Albayrak, who is the son-in-law of Turkish President Recep Tayyip Erdogan, and some say that he is also the heir.
Albayrak argued that at the end of the year, consumer price inflation should have been 20.8% under the new economic program, which was announced just 2 weeks ago. In fact, the cost of food and non-alcoholic beverages increased by 27.7%, prices for transport increased by 36.6%.
The opposition daily Cumhuriyet stressed that Erdogan urges the public to cut costs, but the daily expenses for maintaining the giant palace he built for himself in Ankara in 2017 amounted to 1.8 million Turkish liras at a rate of 3.9 liras per dollar. Currently, the currency hovers around 6 liras per dollar.
Albayrak quickly joined his father-in-law, accusing traders and speculators of price increases. He also noted that the government will announce its measures to combat inflation next week.
Albayrak believes that the worst is over, since October the situation will normalize. However, not all analysts hold the same point of view. Turkish economist Mahfi Egilmez noted that so far there are no signs that any actions are being taken to cope with this situation.
These disappointing data were announced, as disagreements continue over the announcement of Albayrak, made on September 28, that Turkey had signed a contract with McKinsey & Company in the United States to work with the newly created Cost and Transformation. The authority will have to follow the economic program of Albayrak.