World-renowned economist Steve Hanke claimed that the October 2021 inflation announced by TURKSTAT did not reflect the truth. According to the economist’s calculations, inflation in October was recorded as 58.75 percent on an annual basis.
It would be correct to say that we haven’t been talking about anything but the economy in Turkey for months. Turkish lira depreciates against foreign currency TurkStat We can say that the inflation data announced by the company is not very pleasant. Now, there has been a very remarkable development on the subject. world famous economist Steve Hanke A calculation made by Turkey claims that inflation in Turkey is much higher than announced.
Making a statement in the past weeks, TURKSTAT stated that the inflation rate in October is on an annual basis. 19.89 percent is had announced. In other words, a product that could be purchased for 100 lira in October 2020 could be purchased for 120 lira in October 2021. Steve Hanke says that the real inflation in Turkey on an annual basis says 58.75 percent. In other words, according to this economist, a product that could be purchased for 100 liras in October 2020 became 158 liras for 75 cents in October 2021.
There is almost 3 times between the economist’s accounts and TUIK
In the statements made by Steve Hanke, in order to explain the inflation data in question, from high frequency data* and from purchasing power parity. (PPP) was used. According to this calculation, inflation was actually 58.75 percent. Since the Economist does not go into the details of his account, we unfortunately give you a more comprehensive detail. we cannot offer.
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The chart shared by the world-famous economist, in general, Doesn’t fit well with TUIK. The chart, which started in July 2016 and continued until October 2021, reveals that inflation in Turkey is actually very volatile. For example, according to Hanke’s account, in June 2018 (at that time Pastor Brunson skyrocketing inflation, which has steadily declined until late 2019. However, the effect of the pandemic and the volatility of the exchange rate in recent years have put inflation on an upward trend again and it seems that this situation will continue for a while…
High Frequency Data: Results that can be aggregated at very fine scales thanks to advanced computational capabilities.