Inflation
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Inflation rates in Turkey are rising due to higher imported raw material and labor costs, as well as indirect taxes imposed by the government. The depreciation of the Turkish lira also contributes to inflation. Lowering taxes and slowing money supply growth could help reduce inflation.
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Inflation on imports
An expansion of local income raises general demand and imports, leading to higher import prices and inflation. Inflation reduces the purchasing power of money and affects those on fixed incomes. High inflation can cause unemployment as it becomes more difficult to recruit highly skilled workers. A country experiences monetary inflation when imports increase and exports decrease, raising the overall price level. The document recommends that the government encourage domestic savings to counter inflation from rising import prices.
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Inflation
- 1. INFLATION RATES IN THE TURKISH ECONOMY
- 7. Rising imported raw materials costs Rising labour costs Higher indirect taxes imposed by the government
- 8. A depreciation of the exchange rate A reduction in direct or indirect taxation . The rapid growth of the money supply Rising consumer confidence and an increase in the rate of growth of house prices Faster economic growth in other countries
- 11. Dilrüba Camuzcu