Turkish retail price inflation had hovered between 7 and 10 per cent per annum over the last decade. Since the Turkish lira began devaluing, CPI soared to 24.5 per cent in the year to September 2018. To tackle this, last month the central bank but up its key interest rate, something President Recep Tayyip Erdogan did not favour. Yesterday his son-in-law and finance minister Berat Albayrak urged businesses to voluntarily cut prices by 10 per cent; this was part of his ‘fully fledged fight’. He also urged citizens to report sudden price hikes so that the government could raid the inventories of shops, if necessary. Echoes of Venezuela where yesterday the IMF forecast inflation to rise to 1.37 million per cent, up from July’s 1 million. What is the point of an estimate like that?
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