Inflation in Turkey reached 80.21% in August, a record level since 1998, according to official data published on September 5 and reported by Agence France-Presse. This increase can be explained in particular by the collapse of the Turkish lira, which has lost nearly 55% of its value in one year against the US dollar.
A group of independent Turkish economists believe that the figures from the National Statistics Office are still too low. They say inflation hit 181.4% year on year in August.
Turkey has seen double-digit inflation almost uninterrupted since early 2017, but it had never reached such a record high since President Recep Tayyip Erdogan came to power in 2003.
It is interesting to note that the latter is opposed to classical economic theories accusing high interest rates of favoring inflation. The Turkish Central Bank also lowered its main key rate by one basis point in mid-August to set it at 13%, a reflex unlike that of the American Federal Reserve or the Bank of Canada. who keep raising their rates in the hope of lowering inflation.
Faced with this impressive inflation, the Turkish government is trying to support its population. To help residents cope with price increases, two increases in the minimum wage have been decreed since the beginning of the year. But that still seems insufficient.
Turkey has experienced almost non-stop double-digit inflation since early 2017, but consumer price inflation has never reached such a high since the Justice and Development Party (AKP) came to power in 2002. of President Erdogan. In power since 2003, first as Prime Minister and then as President, Mr. Erdogan hopes to be re-elected in the next presidential election, scheduled for mid-June 2023.