ANKARA, Turkey (AP) – Turkey’s annual inflation hit a 24-year high of 83.45% on Monday, September official data showed, further pushing up the cost of essential goods and threatening already high energy, Food and housing costs impacted homes before that. ,
The Turkish Statistical Institute announced that consumer prices increased by 3.08% compared to the previous month.
Experts say inflation is much higher than official figures, and the Independent Inflation Research Group put the annual rate at 186.27% on Monday.
Last month, Turkey’s central bank cut another interest rate, lowering the policy rate to 12% despite rising prices, a falling lira and an unbalanced current account. The lira has lost more than 50% of its value against the US dollar since the central bank began cutting interest rates last year.
Russia’s invasion of Ukraine and the fall of the lira have exacerbated inflation. Economists say Turkey’s rising inflation is being driven by President Recep Tayyip Erdogan’s unconventional belief that higher borrowing costs lead to higher prices – contrary to mainstream economic theory.
The government hopes to cut interest rates to boost production and exports and achieve a current account surplus. Erdogan expects inflation to fall in the new year.
According to statistics from the Statistical Institute, the fastest increase in annual prices was in the transport sector with 117.66%, followed by food and non-alcoholic beverage prices with a 93% increase.
When inflation rises, it’s hard not to notice higher prices. But you don’t have to be too old to understand the expression that a dollar can’t buy as much as it used to. The Happy Meal was introduced in 1979 for $1.10. Today, the same meal costs $2.99. Still, this restaurant is one of the chain’s most popular properties. It is also a barometer of economy due to parental convenience.
And think of the iPhone, which in 2022 costs 81% more than the original model that launched in 2007. But despite the price increase, consumers are willing to pay whatever is required.
The key to these and similar examples is pricing power. A company that is able to increase its prices can maintain its profit margin. This means it delivers consistent results no matter what’s happening in the broader economy. In good times, it can be taken lightly. But when the economy slows, that stability comes to the fore.
In this special presentation, we look at seven companies with significant pricing power at any given time, especially as inflation is currently at a 40-year high.
Check out 7 Stocks With Pricing Power to Overcome High Inflation.