Turkey's inflation passes 75% in what economists believe is peak \ stacker news ~econ

Turkey's inflation passes 75% in what economists believe is peak www.cnbc.com/2024/06/03/turkeys-inflation-passes-75percent-in-what-economists-believe-is-peak.html

1674 sats \ 34 comments \ @siggy47 3 Jun econ

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.

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107 sats \ 9 replies \ @Undisciplined 3 Jun

Yikes!

Good thing @Natalia was on the bitcoin standard, while she was there.

85 sats \ 3 replies \ @Natalia 3 Jun

maybe @Natalia still there 👀 adventuring

0 sats \ 2 replies \ @Satosora 3 Jun

Did you ever visit the Hagia Sophia?

10 sats \ 1 reply \ @Natalia 3 Jun

hmmmm, that's like one of the first things one should do when in Turkey 👀

0 sats \ 0 replies \ @Satosora 3 Jun

How is the food there? I heard the street food is sooo good, but can be a bit dangerous.

54 sats \ 0 replies \ @Satosora 3 Jun

I remember she also said the water quality was very bad there.

90 sats \ 3 replies \ @siggy47 OP 3 Jun

That's what I was thinking. I hope she chimes in.

96 sats \ 2 replies \ @0xbitcoiner 3 Jun

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.

112 sats \ 0 replies \ @Undisciplined 3 Jun

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.

16 sats \ 0 replies \ @Natalia 3 Jun

too hot

yes, I'm exploring a bit and having heat rush atm. 🥵

65 sats \ 0 replies \ @BitcoinAbhi 4 Jun

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

87 sats \ 2 replies \ @nyan 3 Jun

"what economists believe is peak" ... yeah whatever

54 sats \ 0 replies \ @030a29f333 3 Jun

Famous last words

10 sats \ 0 replies \ @siggy47 OP 3 Jun

Exactly. Kind of like "transient."

87 sats \ 1 reply \ @Taft 3 Jun

That's crazy! Wonder how poor people live under these circumstances.

54 sats \ 0 replies \ @gmd 3 Jun

why even show up for work. probably better to just work for food. crazy

54 sats \ 0 replies \ @grayruby 3 Jun

25% haircut if you hold bonds. Ouch.

No wonder Bitcoin adoption is growing rapidly in Turkey.

54 sats \ 8 replies \ @MiddleWay 3 Jun

The last I checked, (1+0.0337)^12 = 1.4884. Neither Turkish Statistical Institute nor CNBC journalists know math?

0 sats \ 7 replies \ @siggy47 OP 3 Jun

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.

67 sats \ 6 replies \ @MiddleWay 3 Jun

I do know math and finance. The two numbers don't agree. I wrote how you go from monthly to annual rate.

54 sats \ 0 replies \ @oliverweiss 3 Jun

This won’t age well :)

0 sats \ 4 replies \ @siggy47 OP 3 Jun

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.

54 sats \ 1 reply \ @MiddleWay 3 Jun

That must be what they meant. Generally, when governments publish inflation stats for a month they always annualize the number.

0 sats \ 0 replies \ @siggy47 OP 3 Jun

Yeah. The way the CNBC article was written was confusing.

54 sats \ 1 reply \ @oliverweiss 3 Jun

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

27 sats \ 0 replies \ @siggy47 OP 3 Jun

Thanks for this chart.

54 sats \ 1 reply \ @SatsMate 3 Jun

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.

31 sats \ 0 replies \ @siggy47 OP 3 Jun

I think the population is de-lirasizing on its own, with a combination of dollars, euro, gold, and cryptocurrencies

54 sats \ 0 replies \ @Satosora 3 Jun

wow.. 50% interest rates? Everyone needs to get on the btc standard, just level the playing field.

54 sats \ 1 reply \ @TheBTCManual 3 Jun

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?

0 sats \ 0 replies \ @siggy47 OP 3 Jun

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:

54 sats \ 0 replies \ @kingzing131 3 Jun

What a complete disaster. I can't imagine how much worse it's going to get. There must be a point of no return.

54 sats \ 0 replies \ @riberet19 3 Jun

Erdogan should resign in view of this data.

54 sats \ 0 replies \ @Coinsreporter 4 Jun

Okay, if that's the peak turkey must slide rapidly from here. But I suspect it..