Inflation in Turkey topped 75% in May in what economists expect to be the peak before prices start to ease.

KEY POINTS

  • Consumer prices rose 75.45% in May on an annual basis and 3.37% on a monthly basis, according to the Turkish Statistical Institute, a government agency.
  • The sectors seeing the steepest annual consumer price rises were education at 104.8%, housing at 93.2%, and hotels, cafes and restaurants at 92.9%.
  • Economists had previously forecast that inflation in the country of 85 million would peak around 75% before beginning to ease.
  • whyrat@lemmy.worldEnglish
    36·
    5 months ago

    For those not keeping up: this is the fallout from Erdogan ignoring economics and keeping interest rates low for years; only in the past year or so having conceding to reality and finally letting rates rise. They’ll likely continue suffering fallout from his prior stance on interest rates for the remainder of the decade.

    From last summer:

    https://www.cnn.com/2023/06/22/economy/turkey-hikes-interest-rates/index.html

    and

    https://www.cnbc.com/2023/06/14/turkeys-erdogan-agrees-to-monetary-policy-turnaround-under-simsek.html

    • Obinice@lemmy.worldEnglish
      15·
      5 months ago

      Aye, he’s an utter twat, is what he is.

      Said his economic policies were from his god or some nonsense too, going against all of his policy advisors (who he came down hard on).

      A nutjob deeply damaging the country he’s in charge of, economically, and in so many other dangerous fascist ways too :-(

  • walter_wiggles@lemmy.nzEnglish
    24·
    5 months ago

    What happens to salaries when inflation is this high? If you wait for an EOY raise you’d starve.

    • Lojcs@lemm.eeEnglish
      15·
      5 months ago

      Public workers, pensioners and minimum wage get raises when the government needs political capital. Not sure about private

      Edit: but most unions negotiate in the beginning of the year I think

    • Siegfried@lemmy.worldEnglish
      5·
      5 months ago

      Here in Argentina, salaries more or less follow inflation (they always are a little behind anyway… unless you are a politician).

      Inflations isnt new to Turkey, so i guess they must be adjusting them

    • filister@lemmy.worldEnglish
      4·
      5 months ago

      And that’s what’s happening pretty much everywhere. Inflation is a godsend to employers for which work became immediately cheaper while they adjust the prices to either match the inflation or surpass it

  • shortwavesurfer@monero.townEnglish
    229·
    5 months ago

    Confetti money. This is exactly why something like Monero has to exist. priced in Monero house prices, for example, are falling rapidly