Turkey’s state energy agency is raising prices by up to 125% as the inflation crisis continues

Turkish authorities drastically increased energy prices as the nation’s inflation crisis worsens.

From last month, the Turkish lira has lost 50% of the value against the dollar compared to last year’s levels – which means that residents are facing declining purchasing power and continuous price uncertainty.

President Recep Tayyip Erdogan’s government therefore raised energy prices, according to Reuters:

The Energy Market Regulatory Authority, citing high global energy inflation, said electricity prices were raised by as much as 1[ads1]25% for high-demand commercial users and by around 50% for lower-demand households by 2022.

Natural gas prices jumped by 25% for residential use and 50% for industrial use in January, said the national distributor BOTAS. The price increase was 15% for power supplies.

In Istanbul, home to about a fifth of Turkey’s population of 84 million, sales prices rose by 9.65% month after month in December, with an annual increase of 34.18%, the Istanbul Chamber of Commerce (ITO) said. Household appliance prices rose by more than 20% while food prices rose by almost 15%. Wholesale prices in the city rose by 11.96% from November to an annual increase of 47.10%, the ITO said.

As Nikkei Asia recently reported, Turkey is also trying to tackle the crisis through new lira-based financial products:

Along with new proposals to encourage Turkish households to exchange physical gold hidden under mattresses with certified gold products, the measures are designed to inject fresh blood into the financial system and stop the weakening of the local currency.

Goksel Asan, chief financial officer at the office of President Recep Tayyip Erdogan, said in an interview on Friday that the government is working on various new financial products to put the nation back on track financially and eventually reach its stated goal of a current account surplus. .

While protests are taking place in Turkey, officials are trying to disprove the dissent. After Turkish leadership warned that they would crack down on “disinformation” online, several Turkish YouTubers arrested to interview citizens about the country’s currency crisis. For example, Hasan K√∂ksoy – who runs the YouTube channel Kendine Muhabir – said in a tweet translated into English that he was taken from his bed “like a terrorist” and arrested “for giving a microphone to the audience”.

The crisis in Turkey arises as similar economic disasters unfold in nearby Lebanon, which is experiencing hyperinflation and inconsistent power supplies. According to the World Bank, Lebanon may be witnessing one of the worst economic depressions on the planet since the nineteenth century.

Meanwhile, rising inflation in the United States is leading to action by the Federal Reserve. According to the Bureau of Economic Analysis, the price index for personal consumption expenditure – which the central bank uses to inform monetary policy decisions – hit a year-over-year rate of 4.1% in October. More recently, the Bureau of Labor Statistics so that the consumer price index rises by a cut of 6.8% – the largest increase from year to year since June 1982.

In January last year, inflation in the United States was 1.4%.

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