{"id":1996311,"date":"2023-08-10T07:45:02","date_gmt":"2023-08-10T11:45:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-turkish-inflation-to-keep-soaring-testing-patience-with-erdogans-u-turn\/"},"modified":"2023-08-10T07:49:57","modified_gmt":"2023-08-10T11:49:57","slug":"analysis-turkish-inflation-to-keep-soaring-testing-patience-with-erdogans-u-turn","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-turkish-inflation-to-keep-soaring-testing-patience-with-erdogans-u-turn\/","title":{"rendered":"Turkish inflation continues to rise, testing Erdogan&#8217;s patience with his U-turn."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysis-turkish-inflation-to-keep-soaring-testing-patience-with-erdogans-u-turn%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1996311&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p><strong>By Nevzat Devranoglu and Orhan Coskun<\/strong><\/p>\n<p><strong>ANKARA (Reuters) \u2013 Turks will get little reprieve from a soaring cost of living this summer \u2062as economists expect prices to jump by as much as 8.5% in August, \u200bunderlining Ankara\u2019s challenge as it embarks on \u200da painful \u200bpath toward more\u200d orthodox policies.<\/strong><\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The sustained inflationary \u2064pressure, driven by a lira\u200b drop and tax hikes, comes as President Tayyip Erdogan\u2019s new finance minister and central bank chief orchestrate a policy U-turn including interest rate hikes that are expected to slow \u2062domestic demand.<\/p>\n<p>The \u200cmonetary tightening \u2013 after years of aggressive\u200c rate \u2064cuts \u2013 \u200bis meant \u200bto cool inflation by mid-2024. \u200bBut in the meantime the U-turn\u200b has hammered the currency and left authorities asking already-stretched households for patience.<\/p>\n<p>In July, consumer prices soared \u2062nearly 10%\u200d sequentially due to \u2064tax hikes and a \u2063lira crash. This month, forecasts by five economists show\u2062 them rising between 5.5% and 8.5%, with fallout from\u2063 mid-July \u200ctax hikes lagging into August.<\/p>\n<p>The economists told Reuters that food prices would jump this month due to a July 16 fuel tax\u2064 hike, which was meant to help fund a 1.12 trillion lira ($42.2 billion) rise in the budget after February\u2019s earthquakes and May elections\u200c boosted \u2062spending.<\/p>\n<p>The tax rise \u2062sent petrol\u200c prices up 45% to 36 lira per litre. \u2063Separately this week, public transportation and taxi fares were raised\u200b by 51% in Istanbul, Turkey\u2019s \u2062largest city, with short-distance taxi fares up 75%.<\/p>\n<p>Erdogan\u2019s\u200b previous drive to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/turkeys-currency-has-lost-50-of-its-value-in-one-year\/\" title=\"Turkey\u2019s Currency Has Lost 50% Of Its Value In One Year\">slash interest rates<\/a> \u2063sent annual\u200b inflation soaring \u2064to a 25-year high above 85% last year and left\u2063 the lira heavily \u2063state managed.<\/p>\n<p>Yet after he was re-elected in May, Erdogan, facing an unstable economy and depleted reserves, named a new cabinet to reverse policy. \u200dThe \u2064central bank under new Governor Hafize \u2062Gaye Erkan has since hiked\u2064 rates \u200dby 900 basis points\u2064 and the lira, freer to float, \u200dhas \u2064plunged 26%.<\/p>\n<p>ERDOGAN\u2019S SUPPORT<\/p>\n<p>Despite\u200b Erdogan\u2019s \u2064outspoken opposition to high rates\u200c in the past, Erkan has vowed to\u2062 continue her gradual tightening.<\/p>\n<p>Yet\u2063 partly due to currency depreciation, the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-turkish-inflation-to-keep-soaring-testing-patience-with-erdogans-<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republicans-are-better-than-that-gop-minority-leader-kevin-mccarthy-blames-trump-for-dc-rioting-earlier-in-week-then-calls-rep-marjorie-greene-to-disagree-with-h\/\" title=\"\u201cRepublicans Are Better than That\u201d \u2013 GOP Minority Leader Kevin McCarthy Blames Trump for DC Rioting Earlier in Week \u2014 Then Calls Rep. Marjorie Greene to Disagree with Her on Biden Impeachment\">u-turn<\/a>\/&#8221; title=&#8221;Turkish inflation continues to rise, testing Erdogan&#8217;s patience with his U-turn.&#8221;>central \u2062bank expects annual inflation<\/a> to\u2063 rise until the second \u2063quarter \u2062of 2024 when it peaks above 60%, spelling more cost-of-living \u2064strains for Turks.<\/p>\n<p>Erdogan publicly backs \u200bthe \u200bgoal of lowering inflation to single digits but said\u200d on Monday \u2063the government\u2062 will at the same time \u201cnever compromise\u201d\u2063 on employment and economic growth.<\/p>\n<p>Some analysts have \u200bquestioned how far he will allow rates to rise and growth to slow,\u2064 especially given nationwide\u200d local elections set for March, prompting Finance Minister Mehmet Simsek to\u200c stress that \u2063he\u2063 has \u200bErdogan\u2019s full support.<\/p>\n<p>A Turkish official \u200bfamiliar with the matter said the gradual tightening aimed \u2063to\u200b preserve growth and avoid shocks to employment\u2064 and the economy.<\/p>\n<p>Moody\u2019s said it could raise Turkey\u2019s credit ratings if \u2062the shift to orthodoxy is sustained. Yet because it will \u2062slow\u200c growth, \u2064it said \u200dthe \u201ckey challenge \u200dis \u2064to balance the need for decisive \u2063action\u2026with the political imperative for continued robust economic growth.\u201d<\/p>\n<p>BETTER DATA<\/p>\n<p>Since Simsek and Erkan\u200d took the reins\u200b two months ago, economists say the Turkish Statistical Institute (TUIK) has\u2063 published data with higher-quality price measurements.<\/p>\n<p>The 9.5% monthly \u200cinflation \u200breading \u2062in July \u201cfully reflected \u2062the tax and fuel changes, \u200cmarking a clear difference between the quality of June\u2062 and July readings compared to those at the start \u2062of the year,\u201d said \u200dan economist who requested \u200banonymity due to the sensitivity of the issue.<\/p>\n<p>Since 2018,\u2064 some economists and opposition politicians have\u200b criticised TUIK\u2019s data on grounds it did not match street prices.<\/p>\n<p>After\u200d years\u200c of divergence with\u200d market expectations, the central bank\u200c matched those last month when it raised its\u200d end-2023\u2062 annual inflation forecast to \u200b58.0% from a previous 22.3%.<\/p>\n<\/p>\n<p>  (Writing by Daren Butler; Editing by Jonathan\u2063 Spicer and Toby Chopra)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/analysis-turkish-inflation-to-keep\/attachment\/file-photo-people-walk-past-a-shop-advertising-sales-in\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/analysis-turkish-inflation-to-keep\/attachment\/file-photo-people-shop-at-a-fresh-market-in-istanbul\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with\u200d Landon Starbuck<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Joe Allen<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Dr. Jeff Barke<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Jack Smith slides into Trump\u2019s DMs while James Comer shows\u200c foreign sources for Biden family \u200cincome.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>BENGALURU (Reuters) \u2013 South \u200dKorea\u2019s Hyundai Motor Group said on Tuesday it plans to\u200c launch more electric vehicles under the Hyundai and\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>BERLIN (Reuters) \u2013\u2063 German\u2062 technology group\u200d Robert Bosch \u200dsaid on Tuesday that \u200bit\u2062 will establish a joint venture with TSMC,\u200c Infineon and\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>TAIPEI (Reuters) \u2013 Taiwan\u2064 Semiconductor Manufacturing Co (TSMC) said on\u200b Tuesday that its board had approved a 3.5 billion \u2064euro ($3.8 billion)\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Gwladys Fouche OSLO (Reuters) \u2013 Meta Platforms is asking a court in Norway \u2063to stop a fine the Nordic country\u2019s data\u2026 \u200c <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Nevzat Devranoglu and Orhan Coskun, economists predict that Turks will face a significant increase in living costs this summer, with prices expected to rise by up to 8.5% in August. This highlights the difficult task faced by Ankara as it strives to implement more conventional policies to address the ongoing inflationary pressure.<\/p>\n","protected":false},"author":66,"featured_media":1996312,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-1996311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1996311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1996311"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1996311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1996312"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1996311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1996311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1996311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}