Turkey, inflation and Turkish Lira

Erdoğan vows to cut inflation after all-time high in CPI

Erdoğan announced financial aid and salary increases for civil servants and pensioners, after year-on-year inflation reached 36%.

Turkish President Tayyip Erdoğan promised to cut inflation below 10% in a speech delivered last night after a meeting with his cabinet of ministers in Ankara, just after the latest economic data showed that year-on-year inflation in Turkey reached 36% last month.

“We are sorry to see that our annual inflation has reached 36%,” Erdoğan said. “However, as a government that managed to reduce inflation to 6%, we will repeat our success in protecting Turkish citizens from financial problems,” added the Turkish president, who announced measures to financially support workers, families, students and retirees facing the tremendous rise in prices: a step that comes after the recent increase of the minimum wage.

The Turkish president also took the opportunity to announce a salary increase for civil servants, as well as pensions. “The total salary increase for civil servants will be 30.5%, and our retirees will see an increase in pensions based on inflation,” said Erdoğan, ensuring that no retiree in Turkey will earn less than 2,500 liras (about 165 euros) a month.

Erdoğan has been forced to promise to reduce inflation below 10% – a goal that does not seem feasible, at least, for 2022 – after the latest data published yesterday by the Turkish Statistical Institute (TÜİK), which reveals that the interannual CPI increased by 36.08% in December: a figure that exceeds analysts’ forecasts by more than 6 points, and which represents the largest inflationary increase in 19 years, since September 2002.