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A30 world news
Diaranson 17 november 2021
‘We don’t deserve this’: Inflation hits Turkish people hard
“There has been a massive rents have skyrocketed and
selloff in financial markets prices for home sales, mostly
just due to this intervention pegged on the dollar, are in-
to the central bank’s inde- creasing.
pendence,” said Ozlem De-
rici Sengul, an economist and In a bid to alleviate suffering,
founding partner of the Is- Labor and Social Security
tanbul-based Spinn Consult- Minister Vedat Bilgin said
ing. “There are several fac- this month that the govern-
tors that move both inflation ment was working to adjust
and financial market prices ... the minimum wage to pro-
(but) the dominant factor is tect workers against rising
the central bank’s policy.” prices.
She estimates more than half “We are working to remove
of the population “is strug- the issue of minimum wage
gling in terms of income.” from the agenda — I can al-
ready say that it will provide a
Erdogan, meanwhile, in- relief,” he said.
sists that the economy is
strong and that the country is Economists say it’s not
emerging from the pandemic enough.
in better shape than others.
“The inflation and low in-
“Shelves in Europe are empty, come and uneven income
they are empty in the United distribution will have more
States. Praise to God, we are side effects in 2022 and 2023
(AP) — Market-stand Turkish lira has been tum- son, U.S. prices rose about continuing with plentitude if the government continues
owner Kadriye Dogru bling to record lows against 6% from a year ago — the and abundance,” he has said. to insist on low interest rates,
makes do with stale, the U.S. dollar as the coun- most since 1990 — and in- loose monetary policy and
sesame-covered bagels, try’s central bank has slashed flation in the 19 European His government has blamed election preparations,” Sen-
known as simit, for lunch interest rates, fueling con- Union countries that use the exorbitant food prices on gul said.
these days. The widowed cerns about its independence. euro exceeded 4%, the high- supermarket chains and or-
mother of two says she est in 13 years. dered an investigation that Musa Timur, who owns a
goes without lunch so she Caught in the middle are ev- has resulted in fines. He also grocery store in Istanbul, said
can put food on the table eryday Turks trying to make Turkey’s currency, as a re- has ordered agricultural co- rising prices make it hard for
for her family later in the ends meet. sult, hit an all-time low of operatives to open a thousand him to replace products.
day. 10 against the U.S. dollar new shops across the country
“Everything is so expen- last week and has lost some in a bid to keep food prices “Any product that we sell —
The money that the 59-year- sive, I cannot buy anything,” 25% of its value since the low. we cannot get them in at the
old earns by selling sweat- Suheyla Poyraz said as she start of the year. That is driv- same prices,” he said.
pants and other garments at browsed food stalls at the Or- ing prices higher, making Earlier, he accused a group of
Istanbul’s Ortakcilar market takcilar market in Istanbul’s imports, fuel and everyday students who slept outdoors He said his customers are no
no longer lasts, and she is Eyupsultan district. goods more expensive. While in parks to protest high hous- longer able to afford a vari-
struggling to buy food, let some argue that a weaker ing and dormitory prices of ety of food and mostly buy
alone anything else. The 57-year-old homemaker lira makes Turkish export- “terrorism.” Meanwhile, bread, pasta and eggs.
has voted for Erdogan’s party ers more competitive in the
“I had never experienced and called on the government global economy, much of
such a deplorable life. I go to to act to end inflation. Turkey’s industry relies on
sleep, I wake up and the pric- imported raw materials.
es have gone up. I bought a “If you are the government
5-litre can of (cooking) oil, it and if we are voting for you There are concerns about Er-
was 40 lira. I went back, it was to put things right, why dogan’s influence over mon-
80 lira,” she said. “We don’t aren’t you intervening? Why etary policy. He’s appointed
deserve this as a nation.” aren’t you stopping the rising four central bank governors
prices?” Poyraz said. since 2019 and fired bankers
Many people in Turkey are who are said to have resisted
facing increased hardship High inflation has been hurt- lowering interest rates. The
as prices of food and other ing the popularity ratings of bank has increased rates by 3
goods have soared. While ris- Erdogan, whose early years percentage points since Sep-
ing consumer prices are af- in power were marked by a tember and will release its
fecting countries worldwide strong economy. Opinion latest decision Thursday.
as they bounce back from surveys indicate that an al-
the coronavirus pandemic, liance of opposition par- In contrast, central banks in
economists say Turkey’s eye- ties that have formed a bloc other pandemic-hit coun-
popping inflation has been against Erdogan’s ruling par- tries have been raising rates
exacerbated by economic ty and its nationalist allies are or considering doing so in
mismanagement, concerns fast narrowing the gap. the months ahead as backups
over the country’s financial at ports and factories, labor
reserves and President Recep The Turkish government shortages and soaring energy
Tayyip Erdogan’s push to cut says inflation rose nearly 20% costs have pushed up prices.
interest rates. in October compared with
a year earlier, but the inde- Foreign investors have been
He claims lower borrow- pendent Inflation Research dumping Turkish assets, and
ing costs will boost growth, Group, made up of academ- Turks have been converting
though economists say just ics and former government their savings to foreign cur-
the opposite is the way to officials, put it close to a rencies and gold.
tame soaring prices. The stunning 50%. In compari-