Officially, inflation in Turkey is almost 80 percent; unofficially, much more

Prices of consumer goods and services rose by 79.6 per cent in July compared to the same month in 2021. – reported the Turkish statistical institute TurkStat on Wednesday. Economists’ forecasts in this regard differed little from the official result, as they predicted an increase of more than 80 per cent.

The year-on-year index has been accelerating in Turkey continuously for more than a year. In January 2022, the year-on-year increase in prices of goods and services was 49 per cent, while in October 2021 it was less than 20 per cent.

Inflation in Turkey

One of Turkey’s pro-government dailies, the Daily Sabah, quoted by Business Insider, notes that some economists accuse the state statistics institute of drastically underestimating inflation growth. The ENAG Group, another Turkish inflation research centre, calculated that inflation in July was actually 176.4 per cent year-on-year, compared to 175.5 per cent in June.

Interestingly, the Turkish authorities, despite such gigantic inflation levels, choose not to raise interest rates. In addition, writes the Daily Sabah, the Turkish government intends to bring inflation levels down through new programmes to stimulate production and export growth.