The cost of living has exploded in Turkey, which is experiencing a major economic crisis a few months before the presidential elections. Inflation has thus reached a 25-year high, while the Turkish lira (TRY) continues to fall. Update on the situation.
Inflation reaches 85% in Turkey
According to official data published for the month of October, inflation has reached 85% over the last twelve months in Turkey. This is an increase of 3.5% from the previous month, and it is the seventeenth consecutive month of increases. It has been nearly 25 years since the country had seen such a rise in the cost of living.
Specifically, food prices have exploded by +99% compared to last yearhousing took +85% and the transport sector also exploded, with +117%.
In parallel, the course of the Turkish lira (TRY) has continued to falland the trend has only been confirmed in recent months:
The long fall in the price of the Turkish lira (TRY)
To put this into perspective, we can look at salaries. Half of Turkish employees earn the equivalent of less than $300 per month. The situation is therefore particularly worrying.
👉 Also discover – Purchasing power and cryptocurrencies: can they help protect against inflation?
The No. 1 exchange in the world – Regulated in France
10% off your fees with code SVULQ98B 🔥
ErdoÄźan refuses to raise interest rates
Turkish President Recep Tayyip ErdoÄźan is currently facing public criticism because he refuses to raise the interest rates of the Central Bank. According to him, this would be even more harmful to the country’s economy. Several economists are pointing the finger at an error, while other central banks – including the Federal Reserve yesterday – have gradually raised their rates in order to contain inflation.
In addition, several experts believe that the figures would be wrong, with inflation which could actually reach a much higher rate. An independent research group said today that real inflation would reach 185% :
ENAGrup Tüketici Fiyat Endeksi (E-TÜFE) Ekim ayında %7.18 arttı.
E-TĂśFE’nin its 12 aylık artışı %185.34 gerçekleĹźti.
— ENAG (@ENAGRUP) November 3, 2022
If the Central Bank of Turkey continues not to raise rates, it is likely that inflation will continue to rise. This is the salient point of fiat currencies, which unlike cryptocurrencies are controlled by a central bodywhose decisions (or non-decisions) weigh heavily on the daily lives of citizens.
👉 On the same subject – Euro zone: record inflation, but France is the least affected country
Join Experts and a Premium Community
PRO
Invest in your crypto knowledge for the next bullrun
Source: AFP, TradingView (TRY/USD)
Newsletter 🍞
Receive a summary of crypto news every Monday by email đź‘Ś
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
2179 items
