Inflation in Turkey

Vocabulary

Video

Transcript

Inflation in turkey has reached nearly eighty percent annually in June — that’s according to official data provided by the Turkish Statistics Institute.

Official being an important distinction here: economists and ordinary Turks both say that costs have have risen much faster than the government reports.
 

 
Our correspondent Yulia Hann joins me from Istanbul for more.

News Anchor: “Yulia, almost 80 annual inflation in June. What does this number tell us and what does it not tell us about the cost of living in Turkey?
Julia Hahn, DW Correspondent: Well this number Stephen comes from Turkey’s state statistics agency as you mentioned, and it’s already an eye-popping figure.

But what’s striking is many Turks no longer believe the official data; they think inflation is MUCH higher, so do opposition politicians and economists who have started to openly question the reliability of the government’s figures on inflation; today a well-known um independent research group announced that turkey’s annual inflation in fact rose to more than 175% in June — that’s more than double the official rate.

Now all these doubts are adding to people’s uh frustration and despair in this massive currency and cost of living crisis some people have taken to the streets in recent months, although I should add that anti-government protests here in the country are very little tolerated; we often see more police than demonstrators.

But we went to a protest a small protest here in Istanbul this weekend. Let’s listen to what people there told me.
 

 
Young Man with Beard: “We have problems paying our rents, our bills and accessing healthy quality food. We’re going through a huge economic crisis that shakes all of us.

Mother: “I have two children. The cheese I used to put between their school sandwiches was 20 liras last year . . . now it’s 84 liras, and I’ve had to start buying cheaper brands.

But even those are getting more expensive.”

Woman: How can people who earn minimum wage still manage to pay their rents and make a living?

They can’t! The situation has become so painful for many of us people are at their limits.
 

 
Newscaster: “People at their limits. The voices of ordinary Turks there. Yulia how do people make ends meet?
Julia Hahn, DW Correspondent: Well I’ve heard all kinds of strategies of how people are trying to get by, especially those who have to survive on a minimum wage or a pension.

They buy less, consume less, obsessively compare prices. They are working a second or third job. They don’t travel. They don’t go to restaurants anymore.

Many people tell me they are getting in debts . . . and many young people tell me their only plan is to somehow leave Turkey and try to live abroad.

So this crisis has really hit the Turkish middle-class and the poor of course and that’s devastating.”

Newscaster: “And what does the government say to this kind of reaction?”
Yulia Hahn: “Well president Erdogan a few days ago announced a raise of the minimum wage um about thirty percent to uh 5,500 Turkish lira a month that’s about 315 euros.

But many people tell me that’s not enough; it’s not enough as long as Turkish president Erdogan continues his unconventional economic policy, where he stubbornly opposes any uh raise of the interest rate by the Turkish Central Bank, that would be the conventional way of fighting inflation.

So they say raising the minimum wage to them is some kind of gift, maybe ahead of the upcoming elections they are officially scheduled for next year president Erdogan is running for re-election.

But his popularity ratings have suffered greatly because of this economic crisis so this might be an attempt to calm people down.

But many people also tell me they no longer believe that president Erdogan is the man who can solve this crisis.

Newscaster: All right our correspondent Yulia Hahn in Istanbul thank you very much you.
 
 

Questions

Inflation, Deflation. In Turkey, consumer goods are getting cheaper. True or false?

Interest Rate. Is the annual rate of inflation in Turkey zero, low, medium, high or very high?

Loan. Do people think that the actual, real or de facto rate of inflation in Turkey lower than official government figures? If there is a discrepancy, why does it exist?

Borrow. Recently there have been massive protests and demonstrations in Turkey. Is this right or wrong?

Credit. Are ordinary people in Turkey proud and thrilled about high rates of inflation?

Debt, Deficit. Have people changed their lifestyles and habits as a result of inflation? Give examples.

Credit Card, Debit Card. The upper-middle class and upper-class (rich) suffer the most because they have to pay much more for everything. Is this correct or incorrect?

Price, Cost. What is the last resort of many people? Has the government taken action to address rampant inflation? What action plan has the government implemented?

Mortgage. Everyone admires, respects and trusts President Recep Tayip Erdogan. Do you agree?
 
 
 
Cash, Coins, Bill. Have you, your parents or grandparents experienced rampant inflation? What happened? How did people feel?

Bills, Rent. What are the causes of inflation?

Budget. Everyone hates inflation. What do you think?

Pension, Social Security. What might happen in the future?

Welfare, Public Assistance, Benefits. What could or should people, governments and businesses do?