Erdogan: In a few months, Turkey's inflation rate will drop to 40%.

 Erdogan: In a few months, Turkey's inflation rate will drop to 40%.

Tayyip Erdogan, the president of Turkey, stated on Monday that it was "clear" that inflation would drop by roughly 40% in a short period of time and by another 20% in 2023.

 

According to figures released last week, Turkey's annual inflation rate decreased to 84.39 percent in November from a peak of 85.51 percent a month earlier. For the first time since May 2021, Turkey's inflation decreased in November, according to government figures. The state statistics agency TUIK reports that this percentage dropped from 85.51 percent in October to 84.39 percent.

 

Turkey's inflation rate has been slowly increasing since May 2021, when it reached a low of 16.6%. In the presidential elections in June, Erdogan's third decade in office will face significant challenges due to the ailing emerging market economy. After Erdogan started an unorthodox economic experiment last year that aimed to reduce persistently high consumer prices by cutting the cost of borrowing, his popularity ratings suffered.

 

The opposing approach is taken by traditional economic theory, which is accepted by practically every other large country. The Turkish currency quickly lost value as people hurried to buy dollars and gold in an effort to preserve their investments.

Oil and gas prices increased, sparking a wave of inflation that the ostensibly autonomous central bank fuelled further by keeping interest rates low.

 

Erdogan has insisted that his relentless pursuit of economic growth at all costs, accomplished through accessible credit and government assistance, will finally bear fruit.