The economical policy based on fighting the “the mother and father of all evil” has backfired so hard, that the president of Turkey had to accept this evil and make changes accordingly. Unfortunately, a bit too late.
A recent survey conducted by the Istanbul Planning Agency (IPA) highlights a significant 80.29 percent rise in the cost of living in Turkey's largest city, Istanbul, compared to January 2023.
Established in 2020 under the Istanbul Metropolitan Municipality, the IPA determined that the cost of living for a four-person family in January reached TL 53,058 ($1,729), marking a considerable increase of TL 21,563 ($722) compared to December 2022.
With over 40 percent of Turkey's workforce earning the minimum wage, currently set at TL 17,002 ($554) by the government, the country is grappling with the highest inflation rates during President Recep Tayyip Erdoğan's two-decade tenure. In October 2022, the official annual inflation rate surged to a peak of 85 percent.
Following his re-election in May 2023, Erdoğan appointed a new team of economists focused on market-friendly policies, granting them autonomy to implement significant policy rate hikes. Despite this, Turkey's official annual inflation rate slightly increased from 64.77 percent in December to 64.9 percent in January.
Recent data suggests a stabilization trend in inflation figures, attributed to the series of aggressive interest rate hikes implemented by the new economic team. Analysts have criticized Erdoğan, who has historically opposed high interest rates, for initiating the inflationary cycle by pressuring the nominally independent central bank to reduce borrowing costs starting in 2021.
A recent survey conducted by the Istanbul Planning Agency (IPA) highlights a significant 80.29 percent rise in the cost of living in Turkey's largest city, Istanbul, compared to January 2023.
Established in 2020 under the Istanbul Metropolitan Municipality, the IPA determined that the cost of living for a four-person family in January reached TL 53,058 ($1,729), marking a considerable increase of TL 21,563 ($722) compared to December 2022.
With over 40 percent of Turkey's workforce earning the minimum wage, currently set at TL 17,002 ($554) by the government, the country is grappling with the highest inflation rates during President Recep Tayyip Erdoğan's two-decade tenure. In October 2022, the official annual inflation rate surged to a peak of 85 percent.
Following his re-election in May 2023, Erdoğan appointed a new team of economists focused on market-friendly policies, granting them autonomy to implement significant policy rate hikes. Despite this, Turkey's official annual inflation rate slightly increased from 64.77 percent in December to 64.9 percent in January.
Recent data suggests a stabilization trend in inflation figures, attributed to the series of aggressive interest rate hikes implemented by the new economic team. Analysts have criticized Erdoğan, who has historically opposed high interest rates, for initiating the inflationary cycle by pressuring the nominally independent central bank to reduce borrowing costs starting in 2021.