Inflation is hurting the broad masses. The difference between consumer and producer inflation indicates that the increase will continue. It is wondered how much more it will increase while the prices are already in a high state. Although the government wing states that there is a slowdown in inflation and that it will decline rapidly, the situation is a little different.
HalkTV writer Barış Soydan also touched on inflation and prices. Stating that inflation and price increase will continue, Soysan pointed out the danger bells especially in agricultural production. Highlights from Soydan’s article are as follows:
‘PRICE INCREASE WILL CONTINUE AT FULL THROUGH’
World writer Alaattin Aktaş discussed the details of the fall in inflation due to the base effect the previous day. According to Aktaş’s calculations, inflation may decrease by 40-45 points in five months.
Such a decline allows the government to say, “Look, we are about to end inflation, give us another term”. So do people believe it? The decline in inflation due to the base effect does not mean that price increases will stop. On the contrary, prices will continue to increase at full speed this winter. In fact, I predict that we will encounter a new wave of shock hikes.
‘MONTHLY 3-4 PERCENT INCREASE IS ALSO VERY HIGH’
Last December and January, inflation was very high due to the terrible rise in the dollar. Monthly inflation was 13.5 percent in December and 11.1 percent in January. Currently, inflation is increasing by 3-4% on a monthly basis. Again very high but not as high as last December and January. Annual inflation will appear to have decreased in December and January as it is calculated based on the same month last year. This is called the base effect. As we have just seen, according to Alaattin Aktaş’s calculation, the base effect may cause a decrease of 40-45 points in the price increase.
‘BAD NEWS COMING FROM AGRICULTURAL PRODUCTION’
However, price increases will not stop. Because very bad news is coming from agricultural production. Fertilizer prices have increased by 250 percent in the last year. For this reason, farmers in many regions have reduced production. For example, it is said that the area planted with tomatoes in Çanakkale decreased to one third of last year. The price of tomatoes did not go below 20 TL this summer. How much does a tomato worth 20-25 liras in summer cost in winter? It is said that it would not be surprising if his weight increased to 50 TL. Let me write it in writing: We will eat tomatoes for fifty liras this winter.