BY ALAATTIN AKTAS
The annual consumer price (CPI) hike reached 36% in December 2021.
The economic policy introduced in September 2021 brought results.
Inflation hit a record high of 86% in October 2022.
Then, it started to decline with the base effect.
It fell to 38% in June 2023.
The figure is relatively low, but people suffer due to the high cost of living.
Inflation soared in July and August following the release of FX rates after the elections.
Then, the same promises are made: “Inflation will rise but will fall to 36% at the end of 2024. Grit your teeth for another few years, and we’ll see the single-digit inflation.”
Let’s assume it will fall to 36% at the end of 2024.
But what about the prices?
The CPI stood at 687 in December 2021.
Let’s take that you paid TRY 687 for a consumption good.
The money out of your pocket increases when annual inflation rises and decreases.
That money monthly rose to TRY 1,084 in October 2022 and TRY 1,352 in June 2023.
If inflation falls to 36% in December 2024, it will soar to TRY 2,532.
You spent TRY 100 in December 2021 when inflation was 36%.
It rose to TRY 197 in June 2022, when inflation fell to 38%.
It will hit TRY 369 if inflation drops to 36% in December 2024, as forecasted.