Turkey Inflation Climbs to 73.5% in May on Food, Energy Costs

The video discusses Turkey's inflation rate, which has risen to 73.5% due to high energy and food prices, making the Turkish lira vulnerable. Despite expectations for a rate hike, the Central Bank is unlikely to change its policy due to President Erdogan's belief that higher interest rates fuel inflation. This belief contradicts conventional economic practices, where rate hikes are used to control inflation.

What was the main factor contributing to the rise in Turkey's inflation to 73.5%?

• High energy and food prices

• Rising unemployment rates

• Decreased foreign investment

• Increased government spending

How does Turkey's current inflation rate compare to the Central Bank's target?

• It is slightly below the target

• It matches the target

• It is slightly above the target

• It is more than 14 times higher

What is the Central Bank's official inflation target?

• 10%

• 5%

• 20%

• 15%

Why is Turkey not expected to increase interest rates despite high inflation?

• Due to international pressure

• Due to a lack of political support

• Because of a belief that higher rates would fuel inflation

• Because inflation is expected to decrease naturally

What is President Erdogan's belief regarding interest rates and inflation?

• Interest rates should be abolished

• Interest rates have no effect on inflation

• Higher interest rates will increase inflation

• Higher interest rates will reduce inflation