While Official Figures Say Turkey’s Inflation Rate Is 85%, Third-Party Statistics Say It’s Closer To 200% CryptoBlog

Inflation has soared in Turkey, with official figures from the Turkish Statistical Institute (Tüik) showing the country’s inflation rate topped 85.5% year-on-year. Turkey’s inflation rate has been rising for 17 consecutive months and last month hit a 24-year high.

Turkey’s interest rate remains low, while inflation is rampant

Turkey, the transcontinental country located in Western Asia, is suffering financial difficulties as the region’s economy is in dire straits. On November 3, 2022, the Turkish Statistical Institute (Tüik) released the country’s official inflation rate figures and statistics show that the rate reached 85.5% year-on-year.

Reports further indicate that the cost of living in Turkey has increased significantly and the Tüik report shows that food prices in Turkey have increased by 99% year-on-year. Housing and rents jumped 85% for Turkish residents. On October 20, 2022, the Central Bank of Turkey and Turkish President Recep Tayyip Erdogan lowered the region’s benchmark bank rate by 150 basis points (bps).

It was the third consecutive month of cuts according to statistics and Erdogan explained in September that interest was an enemy. “My biggest battle is against interests. My biggest enemy is self-interest,” Erdogan said in late September. He also noted at the time that the interest rate needed to “keep falling” despite runaway inflation.

The International Monetary Fund (IMF) has also urged Turkey to raise the country’s benchmark rate. Reports indicate that an IMF delegation has been sent to Ankara and Istanbul to bring people from the public and private sectors to find a solution to Turkey’s economic crisis.

“The policy rate cuts at the end of 2021 added to existing vulnerabilities and were followed by a depreciation of the lira and high inflation,” the IMF said. “The mission recommended early increases in policy rates accompanied by measures to strengthen central bank independence. Such movements would contribute to reducing inflation more durably.

Despite official inflation figures from the Turkish Statistical Institute, third-party figures tell a whole different story. Economists from the Inflation Research Group (Enag) point out that the annual increase in inflation in Turkey is closer to 185.5%. The researchers claim that the Enag Inflation Index has dynamic attributes that adapt faster to changes in the consumption habits of Turks.

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What do you think of Turkey’s skyrocketing inflation rate and President Recep Tayyip Erdogan’s abolition of interest rates? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.

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