Consumer prices rose 75.45% in May on an annual basis and 3.37% on a monthly basis, according to the Turkish Statistical Institute, a government agency.
Keep in mind that interest rates are currently at 50% per year.
For years Erdogan thought the cure for inflation was to lower interest rates.
Yikes!
Good thing @Natalia was on the bitcoin standard, while she was there.
That's what I was thinking. I hope she chimes in.
Natalia might be looking for another place to stay. I remember her complaining that it was too hot in Turkey. As a nomad, she must already be in a place with milder temperatures. At least that's what I would do.
She mentioned moving on from Turkey. I don't know if she disclosed her current location, but she did say it was surprisingly hot there.
yes, I'm exploring a bit and having heat rush atm. 🥵
maybe @Natalia still there 👀 adventuring
https://m.stacker.news/33700
https://m.stacker.news/33701
Did you ever visit the Hagia Sophia?
hmmmm, that's like one of the first things one should do when in Turkey 👀
How is the food there?
I heard the street food is sooo good, but can be a bit dangerous.
I remember she also said the water quality was very bad there.
The last I checked, (1+0.0337)^12 = 1.4884. Neither Turkish Statistical Institute nor CNBC journalists know math?
I don't know math either, but that 3.37 % inflation is month to month. So, I believe they are saying it rose 75% from last year and 3.37 from last month.
I do know math and finance. The two numbers don't agree. I wrote how you go from monthly to annual rate.
This won’t age well :)
Each month to month increase has to be different, obviously. You are not simply multiplying or dividing by twelve. In other words, prices rose 3.37% from April to May. There is no correlation between the numbers.
Here are the inflation rates that may help with calculations: https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Statistics/Inflation+Data/Consumer+Prices
Thanks for this chart.
That must be what they meant. Generally, when governments publish inflation stats for a month they always annualize the number.
Yeah. The way the CNBC article was written was confusing.
"what economists believe is peak" ... yeah whatever
Famous last words
Exactly. Kind of like "transient."
That's crazy! Wonder how poor people live under these circumstances.
why even show up for work. probably better to just work for food. crazy
I don't understand these government policies too much. But they have always been less caring for agriculture. For Turkish current situation Erdogan is directly responsible
Looks like he needs to pivot! If he wanted to solve the inflation issues, why didn't he just peg the Turkish Lira to gold? I understand he can't debase the citizenry, but this would solve the inflation problem for them.
Another avenue would be to dollarize or Euroize their country. We saw Lebanon, El Salvador, and other nations do this in the past as well.
I think the population is de-lirasizing on its own, with a combination of dollars, euro, gold, and cryptocurrencies
Okay, if that's the peak turkey must slide rapidly from here. But I suspect it..
25% haircut if you hold bonds. Ouch.
No wonder Bitcoin adoption is growing rapidly in Turkey.
wow..
50% interest rates?
Everyone needs to get on the btc standard, just level the playing field.
If you're rates are 50% and official inflation is 75, its probably more than that on the ground, wouldn't you be borrowing your tits off at this point to buy any assets and just service the minimum of that loan that's getting debased with time?
I think it's academic. I don't imagine many loans are closing denominated in the turkish lira. @JoeNakamoto's recent video talks about the reality on the ground:
https://youtu.be/hhnusCXB_QU?si=Rc65xueH0-yse350
What a complete disaster. I can't imagine how much worse it's going to get. There must be a point of no return.
Erdogan should resign in view of this data.