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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-
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