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Turkey Inflation: Bad days of this steadfast friend of Pakistan, inflation reached 73% in the country which was once very strong

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Turkey Inflation

Highlights

  • After Pakistan, the economic situation of its friend Turkey is also bad.
  • Inflation has reached 73.5 here due to Russia Ukraine crisis
  • Opposition to Tughlaqi decisions of President Recep Tayyip Erdogan also started

Turkey Inflation: Like Pakistan, its close friend Turkey is also struggling with the dire economic situation. Due to the Russia-Ukraine crisis, inflation has reached 73.5 here. This is the highest level in 24 years. The prices of essential commodities are sky high. Amidst the deteriorating situation, protests against Tughlaqi decisions of President Recep Tayyip Erdogan also started here. Like Turkey, the situation in Pakistan is also bad, here petrol has become costlier by Rs 60 in 8 days.

Are President’s Policies Responsible?

In the last few months, rising inflation in many countries of the world has been a cause of concern, but many analysts are blaming President Recep Tayyip Erdogan’s wrong economic policies for the skyrocketing prices of essential commodities in Turkey. According to data released on Friday by the Turkish Statistical Institute, inflation has increased by about 70 percent in May compared to April. At the same time, prices of consumer goods have increased by about three percent in May as compared to April.

Contrary to the beliefs of economics

People in Turkey believe that along with foreign reasons, Erdogan’s wrong policies are also pushing Turkey into a ditch. Contrary to established beliefs, Erdogan believes that high interest rates lead to inflation. For this reason, she advocates keeping interest rates low to boost economic growth and exports.

Lira down 44 percent

In line with Erdogan’s thinking, Turkey’s central bank has cut the policy interest rate by up to five percent since last September, bringing it to nine percent. As a result, the Turkish currency lira declined by up to 44 percent against the US dollar.

Things got worse after the Ukraine war

The situation in Turkey has worsened as oil, gas and grain prices rose after Russia’s attack on Ukraine in February this year. The transport sector recorded the highest growth of 107.6 percent in May. After that the prices of food and beverage products have increased by 91.6 percent.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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