As people living in Turkey, we agree with the government, the opposition, the business community, its employees and its farmers, that the cost of living and inflation we feel is “high”. We also know that despite the growing inflationary wave in the world, our inflation is so negatively differentiated from other countries that there is no reference to the Anatolian phrase “Hand wedding, party”. However, dangerous developments are occurring regarding the high level of inflation and which can only explain this data, which will carry the political polarization that is straining society on the economy and economic institutions. The government is considering banning the disclosure of data by organizations such as the Inflation Research Group (ENAG), which collects market prices, calculates consumer inflation and shares it with the public, to except for TURKSTAT.
High inflation should only be requested from TUIK
As readers of WORLD in our news watch, the fact that this intention was clearly included in the Baggage Bill which was introduced before the House Plan and Budget Committee was put forward last week , fell like a bomb in the parliamentary wings and on the news agenda. This regulation, which was not included in the bag bill at the last moment, was to be implemented by making an addition to Article 6 of the Turkish Statistical Law No. 5429. In the draft text, this regulation has been included in the legislative language as follows:
“Before research containing statistical results in the fields of environment, demography, prices, labour, agriculture and national accounts are announced to the public, as an alternative to statistics produced by the Agency, the Agency is requested for approval of its methodology showing the scope, sampling method, sample volume, data collection method and application time. . The establishment concludes this request within two months. Research results whose methodology is not approved by the Institution may under no circumstances be disclosed to the public.
Although this intention is not reflected in the text of the bill at this time, it has brought many new questions to mind. “The ITO index, which calculates inflation for Istanbul for years outside ENAG, and the calculation of the hunger and poverty line, in which Türk-İş announced the cost of living for a family of four, can they also be considered within the framework of this intention?” Is it intended to express economic and social problems before the elections only in the direction desired by the government?”, “The polls of opinion can they be evaluated within this framework Search for answers to your questions.
Macro-precautionary measures are questioned
Due to the new direction of economic policy, the monetary policy framework of the Central Bank of the Republic of Turkey (CBRT) has lost its meaning. Moreover, this fact has been repeatedly affirmed by the most authoritative mouths. For a while, we stopped reading the texts and articles from the Orthodox period, which are still full of important information on the CBRT website and provide communication on monetary policy.
Those who wonder “the fact that the accumulation that is expected to befall us as the danger of an avalanche of producer prices (TÜİK PPI, 114.9%) can significantly affect consumer prices (citizens)”, “how the exchange rate-inflation pass-through happened”, “the rise in world energy prices is one of the reasons for Turkey’s economic growth. texts describing how they have upset their balance” www.tcmb. They can be found on gov.tr with a keyword search.
Announcing that the policy rate for high inflation was held constant at 14% last week, the briefing note for the meeting of the CBRT’s Monetary Policy Committee said: “The Board has decided to strengthen the macroprudential policies”. has been called. Macro-precautionary measures are generally applied during periods of crisis and economic turbulence, to avoid a contraction of the economy afterwards. Credit and financing circuits are monitored more closely so as not to experience high inflation and recession simultaneously. It can therefore be expected that these measures will concern the BRSA rather than the CBRT, which has been acting as a development bank for some time. From now on, the provisions to be taken within the framework of “macro precautionary measures” are being questioned.
The foreign currency protected deposit system (KKM), which is at the center of the new economic policy, has important similarities with the “previously announced and inflation-targeted exchange rate system” introduced in 1999 Important information on the evolution of the exchange rate regime in 25-30 years, which illuminates today, www.bddk. It is available in articles and review texts available on gov.tr.
14% fuel discount for the public until 2025
Public vehicles, including municipalities, benefit from reduced fuel prices if they follow certain procedures. The General Directorate of the State Supply Office (DMO) has been providing financial intermediation services since the beginning of 2020 in order to provide the necessary fuel to public institutions and bodies. In the period 2020-2021, public institutions and organizations purchased fuel with a 10% discount for 2 years. Around 70,000 public vehicles benefited from reduced fuel prices, saving the public 140 million TL.
With the tender held in September 2021, Petrol Ofisi A.Ş. The contract was signed and extended until early 2025. The discount rate, on the other hand, has been practically fixed for 3 months and has been set at 14%, as if in line with the CBRT’s key rate. What to say, mil, to the chief farmer who can’t get on his tractor or enter the field because of the high price of diesel, the food supply chain from field to market, to table, shuttles students, and public transport vehicles.