Despite President Recep Tayyip Erdoğan’s words, “Inflation will start to come down after May with the measures we have taken and will take”, May was a “black” month in terms of price increases. The prices of Brent, which saw 120 dollars on the one hand, and on the other hand, the rise in fuel oil did not stop due to the rise in exchange rates. According to economists’ expectations, food inflation will increase by more than 10% in May and will reach 115% per year. It will not be surprising that the fuel, which was 7 TL a year ago and 25 TL today, will reach 30 TL in the near future.
The dollar, which started in May with 14.84 TL, has become 16.39 TL today. Gasoline, which was 20.33 lira per litre, rose to 25.01 lira with a 25% increase. The increase in these two main expenditure items has resulted in an increase in all areas of life. In May, in addition to products such as vehicles and residences, in the markets; Many products such as dry tea, milk, cheese, cigarettes, alcohol and ice cream were also increased. A kilo of tea, which started in May with 45 lira, closed the month at 69.90 lira with an increase of 55%, while a liter of milk, which started at 13.95 lira, closed the month to 19.50 lire with an increase of 39%. Cow cheese, which was 99 lira at the beginning of the month, rose to 119 lira with a 20% increase.
Hüseyin Demirtaş, President of the Farmers Association of Turkey, said: “In May, all treks doubled. There are hourly price changes in feed and fertilizer. At the beginning of May, the tank of a tractor was filling up with an average of 2,500 lire. Now it costs 2 thousand 800 lira. It has been said that inflation will go down when the harvest starts, but if the costs continue like this, it is impossible to get cheap food,” he said.
Stating that basic costs continue to rise even as fruit and vegetable production increases, Turkish Halciler Federation President Yüksel Rabbit said that although prices have come down, they have not come down to an affordable level as costs have increased. Demirtaş said, “Today, the cost of supplying a product is 3 to 4 lira, depending on its type and number. For this reason, it is no longer possible to sell products under 6-7 liras,” he said.
“THE BLACK MONTHS ARE COMING”
Stating that the 25% increase in fuel in May will trickle down to consumer prices in June and July, Prof. Dr. Erinç Yeldan said:
“Turkey will face new inflation dynamics in the summer months due to input costs. We saw in the monetary policy committee meeting last week that there is a market bank that does not know or does not want to know the inflation and monetary policy of the country. No action is being taken to turn expectations into positive ones and give the impression that inflation is being fought. Therefore, an inflation of expectations occurs. The balance between supply and demand in the market is confused.