I wonder how many people know the 530 billion lira support to the citizen?

In the face of the intensity of the political agenda and the speed of social engineering activities, one can inevitably fall into the flow of events. As a matter of fact, there is no subject that has not been written and interpreted for days about current developments. We also shared our views and thoughts, what we know about what is going on in the background, and our suggestions for the stability and democratic quality of the country.

Maintaining its importance in the widest range from ordinary citizens to professional business managers “inflation issue” I would like to mention the technical and political details.

cost of living The level of inflation and its calculation method, which is generally accepted as a general rule, are now the target of systematic criticism. Trust in institutions is undermined. In this way, politics is tried to be aligned.

Of course, economists know, but A few words on inflation for the curious Let’s talk about the sensitive issue…

CPIConsumer Price Index, average households’ consumption habits. determined and weighted according to It shows the change in prices of goods and services. PPI ie Producer Price Index only goods produced by the industrial sector includes groups.

for CPI… fresh fruits and vegetables, LPG, bottled gas etc. household spending patterns. for 16 food products determined according to once a week, monthly for other products Compiling the price twice. Gasoline, diesel, daily prices of tobacco products (cigarettes) being watched. Likewise, based on the barcode prices taken over the internet with data are also subjected to daily analysis. PPI prices industrial goods electronically recorded for and it meets on the 5th, 15th and 25th days of each month. Crude oil, natural gas, electricity weighted average with one month lag prices are reflected in the index.

The rise of the exchange rate of course influences inflation upwards. Especially inputs in the manufacturing industry (especially imported increase in energy prices first to the PPI, then it is reflected to the CPI to a certain extent. This situation, to cost inflation related confirms reality.

PPI is calculated excluding taxes. However, such as electricity and natural gas prevent price increases in critical products government subsidy policy is implementing. currently natural gas, 80 percent of the actual cost of electricity at less than 50 percent sold to the public.

To draw a numerical frame like this, the destruction of inflation in the citizen’s budget relatively explaining the effort to reduce benefit. electricity, natural gas and government for fuel 165 billion pound gave up income (tax). This year, the resource used in favor of the citizen 300 billion liras expected to exceed. In 2023, at least 530 billion liras subsidy expected to be done. A in other words… Especially during the warm-up season natural gas and electricity bills to some extent the negative impact on their budgets. reduction and stability in fuel prices. more than half a trillion the amount is left to the households.

including EU countries between PPI and CPI in all countries scissors open and PPI, energy and commodity price shocks. watching higher. So much oil and one-year increase in natural gas on PPI basis exceeds 203 percent. in supply chains breakage and the reserve stocks of countries in food products due to the increase of 139 percent.

In summary…
Inflation is an unfair tax. It erodes social and commercial relations. There are also parts of inflation that are not under the control of governments. The important thing is the existence of the government, which is aware of the inflation problem and prioritizes both income reinforcement and price stability, as in Turkey. 2023 is a candidate for Turkey to be the year when inflation regresses and the focus tends to increase prices.