31/03/2023, 23:46 Turkey’s inflation drops sharply in boost for Erdoğan – POLITICO

Turkey’s inflation drops sharply in boost for

Erdoğan
The fall could help president ahead of elections but is unlikely to ease the strain on
Turkish people.

Inflation in Turkey hit a 24-year high of 85.5 percent last October | Chris McGrath/Getty Images

BY NEKTARIA STAMOULI

JANUARY 3, 2023 9:08 PM CET 2 MINUTES READ

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31/03/2023, 23:46 Turkey’s inflation drops sharply in boost for Erdoğan – POLITICO

Turkey’s inflation slowed sharply in December, in a development that could help President
Recep Tayyip Erdoğan ahead of the country’s national elections — but may not be felt by
ordinary Turks.

The consumer price index rose by 64.27 percent in December, the Turkish Statistical
Institute announced Tuesday, in the second monthly drop in a row, down from 84.39
percent in November.

“We have closed the year 2022 by achieving a consumer inflation even below the medium-
term target,” Erdoğan said during a speech in Ankara in which he announced a 25 percent
rise in public sector wages and pensions.

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“Our goal is to remove the inflation bubble this year and remove it completely from our
country’s agenda, starting next year.”

The fall is mainly due to the fact that a high rate in the same period 12 months earlier
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naturally makes inflation push statistically lower. So for normal Turkish households it's
unlikely to ease the cost of living — even if it does deliver Erdoğan good news.
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The Inflation Research Group, made up of independent academics and experts, said the
country’s true inflation rate for December is almost double at 137.55 percent.  

Inflation hit a 24-year high of 85.5 percent last October, mainly due to Erdoğan’s unorthodox
low interest-rate monetary policy.

Unlike central banks around the world that raised interest rates to bring soaring inflation
under control, last year Turkey’s central bank slashed interest rates by 5 percentage points,
down to 9 percent.
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31/03/2023, 23:46 Turkey’s inflation drops sharply in boost for Erdoğan – POLITICO

Turkey is scheduled to have presidential and parliamentary elections on June 18, but the
government is considering holding them earlier.

“Since this date corresponds with summer holiday season when people are travelling, we are
evaluating bringing the date slightly forward," ruling AK Party spokesperson Omer Celik
said on Monday.

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