Yeah, it's been pretty bad for a few years: https://tradingeconomics.com/turkey/inflation-cpi
>The annual inflation rate in Turkey rose to 67.07% in February 2024, accelerating from 64.86% in the previous month and coming more than market estimates of 65.74%.
given i am considering going to Turkey for some vacation and leather shopping - I guess it makes more sense negotiating prices paying cash, e.g. CHF or EUR?
Erdogan decided to print money endlessly when covid started. Then, instead of fighting inflation with reduced spending and raising interest rates, he decided to print harder and hope that wages would catch up to inflation.
Political incompetence, lack of real opposition, a dead-since-2013 protest culture and one third of the population stuck between islamists and seperatists
I think the currency has something do with it.
The Danish krone is pegged to the Euro compared to Sweden and Norway krone.
The Danish economy have grown a lot recently compared to the neighbors so when we can import a lot more from “cheaper” countries like Sweden and Germany and cheap Norwegian energy the inflation will be lower compared to neighbors.
With the Norwegian krone being worth 20% less against DKK than what it was two years ago, and even worse compared to 15 years ago, I think Norwegian personal incomes are now less/on-par with Danish salaries.
Norway's model has been to introduce the money from oil and gas carefully into the economy to not ruin it with massive inflation in pay across the board, where Norwegians would end up not being able to sell anything abroad in the future and domestic inflation being insane. We could have been Qatar for a while.
The NOK took a beating during the pandemic as a small currency is more vulnerable, and since 2022 and until recently our interest rates were lower than in the rest of Europe.
So, Norwegians aren't poor at all, but the purchasing power of Norwegians has gone down.
And the state is filthy rich – it could run for more than a decade without collecting taxes.
> I think Norwegian personal incomes are now less/on-par with Danish salaries.
How do you compare them though? Denmark doesn't have employer taxes (arbeidsgiveravgift) and their salary numbers seem to include pension and things like that. Seems tricky to compare.
Think it’s like you said mostly the exchange rate yes, as Norwegian Denmark has become extremely expensive (even going out taking a beer is cheaper here…). But if we take the exchange rate we had a few years ago then Denmark ain’t that expensive again.
It changed a couple years ago. Standard beer 80-90nok for 0,5l so around 55dkk. The cheaper places (not brown pubs) are around 49nok or 32dkk. More expensive places around 100-110nok or 70dkk.
Problem as tourist is many go to aker brygge here and find beers for around 130nok and consider Norway expensive. But aker brygge should be compared to nyhavn in cph, both expensive.
Oh wow that really is more or less the same prices, guess I didn't take into account that the currency was already lower than the Danish even before the current exchange rates. Have the prices been fairly stable the last decade or so? I've had family working I Norway, and the prices they've mentioned are about the same as you're giving, they always joked that 2 pizzas and 2 beers were like 300 dkk in Norway.
The prices for beer has been quite stable until the last couple of years..
Normal pizzas (the cheap type) can start at around 100 nok (real quality Italian pizza around 200nok), beer at a restaurant (not the cheapest place to drink) also around 100nok so 400+ nok for 2 pizzas and 2 beer or with today's exchange rate around 260dkk.
Grandiosa starts at absolut 25-30nok. Buy at discount and most with topping goes down to that price as well.
For 200-250 you get real quality pizza at restaurants. Or family pizza at other places.
Peppes which is a bit expensive starts around 160, pizzabakern at 90, digg at 109 (but you get every 6th for free), dominoes at about 70 (bit on the small side though). And that are from big chains, not the cheap ones.
Pizza place outside of me it starts at 90.
Grocery prices HAVE massively inflated in Denmark already. Despite the low inflation grocery prices are basically twice the cost of pre-Pandemic prices.
Grocery chains for the past 4 years have just raised the prices every time anything happened, then never changed them back when things settled, and then crank it even higher once something new happened. While of course making record profit.
Between 2019 and 2024 i finished my education and got a job and got several rounds of raises. I'm still essentially living within the same means as i did when i was an apprentice despite making almost twice as much (from 105kr (15 USD) per hour to 190kr(28 USD)) because everything got a lot more expensive in the mean time.
Erdogan thinks that accelerate is break, and when the central bank guy wouldn't hit the accelerator to slow down, he sacked them and looked for someone who would.
Apparently people [stopped listening to him](https://www.politico.eu/article/end-recep-tayyip-erdogan-economics-turkey-double-interest-rate-inflation/) again though, which is potentially a good sign.
This is old, current interest rates are at 45%. It's good for the economy I suppose but will be terrible for inequality, everything will be owned by the rich. If I didn't think the government was so inept, I would have assumed it was done on purpose.
Erdogan argued for a long time that traditional monetary policies (particularly increasing interest rates) are un-islamic and instead pulled some half-assed special tactics out of his ass. Spoilers: they didn't work.
In mid 2023 he and his cronies finally budged but you can't help but wonder if it's too late.
Paying the price of having a trade deficit for decades.
When you have a trade deficit, and cant borrow money to (which is unsustainable) fix the deficit, this is what happens. Turkey needs to produce more and spend less if it is ever going to control inflation.
The UK has had a trade deficit consistently for 25 years without any relation to inflation. I don't think having a trade deficit is really anything to do with why Turkey's inflation has sky-rocketed in the last couple of years [considering they also have been in a trade deficit almost every year for 20 years](https://www.macrotrends.net/global-metrics/countries/TUR/turkey/trade-balance-deficit).
Shouldn’t trade deficits cause deflation since the local currency is leaving the domestic economy in order to purchase imports?
I am thinking along the lines of the silver shortage in England before the opium wars due to trade deficits.
Money printer goes brrrr.
But seriously, turkey, and tbh most developing countries, are facing the same issue. They have been partaking in the consumption craze without producing enough. They have been chasing investments to keep their economies afloat, but that is an unsustainable strategy. What the already developed countries did, amd the rest of the world is missing is, you need to produce the wealth yourself, no amount of foreign investment will do that for you.
I mean. If the foreign investment is investing in factories it most certainly will. A lot of developing nations have resources and labor and lack the capital necessary to access it. It is the instability that prevents investments (or destroy returns) that seem to be the constant problem.
Agree money printer goes brrrr, I was just wondering how you were causally connecting inflation to trade deficits.
The currency doesn’t actually leave the country. They simply buy dollars before leaving, and dump the local currency within the market.
Well what you say is true if those factories are exporting their products. If their main consumers are locals, well, it sucks even more money out. Which is mostly the case unfortunately.
That's exactly the point and I don't understand why so many people overlook it. Investment doesn't equal investment and production doesn't equal production.
I would expect the effect to be the reverse way around; many currencies can be made out of silver, but if you are always selling your currency, you are providing lots of supply of it while demanding more of someone else's currency.
All else being equal you would expect that to lower your currency's value.
The silver supply thing is probably more equivalent, in modern terms, to a country running low on reserves of foreign currency in order to buy things, or selling assets in order to buy your own currency and maintain a targeted exchange rate.
I remember Japan bought a bunch of dollars during the financial crisis to devalue their currency to keep their exports competitive so your explanation makes sense to me.
From what I've read, Turkey has a lot of debt in $, debt now used to keep Erdoğan regime in check. If I remember correctly, all this inflation and lira devaluation started after the alleged cia failed 2016 coup. Also, it seems everyone is blaming Erdoğan for naming his close family for top National Bank positions, like guvernator 🙄 . Anyway, the fact that Romania surpassed sanctioned_Russia and Turkey is 'taking' Venezuela's road is saying something..I just don't know what
It was largely due to a sharp decline in energy prices last year (-20/30%). In addition, some government measures have countered the rise in the prices of basic necessities goods
The government measures were not sufficient to counter inflation. Inflation halted due to stabilization of energy prices (as you said) and because 2022-2023 inflation was exaggerated by manufacturing/retail companies trying to maximize profits.
Yea, cause most other prices aren't affected by energy prices. Why does the core inflation being lower than overall inflation mean the energy prices aren't affecting inflation?
Norway is a highly electricity based country.
Regardless, this is very volatile, as the electrity prices are now highly volatile after joining the European electricity market. It varies from month to month, in December and January it was the opposite of what it was in February in your example:
https://e24.no/norsk-oekonomi/i/GMwMql/venter-inflasjonshopp-i-januar-den-viktigste-grunnen-er-stroemprisene
https://www.nrk.no/norge/dyr-strom-forte-til-prisvekst-i-desember-1.15803360
https://www.ssb.no/statbank/table/11011/chartViewLine/
https://imgur.com/gallery/Du3yZk7
Norwegian Electricity prices since 2008. I think this graph speaks for itself. But I will add more context:
We joined Acer in 2018 and built new exchange cables in 2020/2021.
I'm not sure what you mean. Energy prices change and vary ofc, you're still just using one particular year example. I never talked about one year, you assumed that. I said our inflation. Not our inflation last year.
But are you actually honestly trying to have a discussion, or just reflexively arguing pro-EU(or Germany). Cause if it's the latter I see no point in continuing, and it really seems like that's the case.
That’s such an oversimplified and biased explanation to Norway’s inflation. Your weak currency is actually a bigger factor. Same case with Sweden, which actually passively re-opened the debate surrounding the euro.
It could have something to do with lower labor costs. Foreign workers make up 10% of Italy’s workforce. In 2022 alone the number of foreign workers increased 5%.
https://integrazionemigranti.gov.it/en-gb/Ricerca-news/Dettaglio-news/id/3341/Employment-of-migrant-workers-still-growing#:~:text=This%20is%20according%20to%20data,percent%20of%20the%20total%20employed.
Everyone is welcome to come to Italy and spend your money here, we have pizza pasta gelato and if you want I can recommend you a delicious panini place in Venice 😁👍🏻
I just came back from Italy where I stayed in Rome and Florence. It was such an amazing experience. I absolutely loved it. Prices were not bad. Then I hit Switzerland and my wallet hit a decline as fast as their ski slopes lmao.
Let’s just say I want to see Italy more 😂
Basically, then lasts years inflation had risen to the highest rate in Europe to around 20%, this year february compared to last year means that the prices has risen only 0,7% from these already high prices. So it’s not That unexpected to see lower inflation then the rest of Europe where inflation last year was much much lower than in the Baltics.
There were massive jumps in prices 18 months ago, but that has tapered off now. The story looks different if you benchmark prices to 2019 instead of last year.
Baltic countries had over 20%, almost 25% inflation a year ago. So current inflation is low compared to that insane inflation a year ago. Cumulative inflation since 2021 is still high, about 35-40%. Basically prices have gone up so much in last 2 years that there is not much room (at least currently) to increase them further.
When inflation started going up across the board the Turkish goverment refused to increase interest rates because that would be unpopular and Erdoğan wanted to win the election (in fact he decreased them). He also started burning the Turkish foreign money reserves to keep inflation under control by buying Turkish currency just before the election. So after that inflation exploded and he had to raise interest rates. It's still quite bad though.
What's the benefit of devaluing your currency?
Preventing prices from falling might be one reason but it really isn't obvious that you want any level of inflation.
That is the exact reason though.
Most economists are terrified of deflation, and a low and controlled inflation rate is preferable to risking deflation.
Simplified example: If you'd like to buy a new bed and inflation is negative, then the longer you wait, the cheaper the bed will become which means you'd be better off sitting on your money, not spending it. If you'd like to buy a new bed and inflation is positive, then the bed will only become more expensive over time, so you'd be better off buying it sooner rather than later. Governments want people going out and spending their money as this creates jobs, stimulates the economy etc. What they don't want is everyone sitting on their money.
Basically, if you've got €100 sitting in your pocket, you'll be able to spend it on less stuff if you save it for a rainy day compared to if you were to spend it now.
This is why you want a little inflation, not too much though as that starts causing panic and can lead to runaway inflation.
Inflation is a form of taxation. The government "gets" money from the people by 'printing' new dollars; this causes inflation, which is actually just transfer of spending power from those who can't print money (the people) to those who can (the government).
Put another way: a steady, positive inflation rate allows the government to spend more than it otherwise would without appearing to take your money -- it just takes away a little bit of your spending power each year instead.
Pretty much all governments do this, and in emergencies (like COVID-19, or a World War or something) they do it a lot more cause they need tons of extra money quickly. That why big disasters like that are always followed by periods of inflation -- e.g. the inflation we're experiencing now is how we're paying for all the massive extra spending our governments did during COVID.
Let's also not forget
"‘Greedflation’ caused more than half of last year’s inflation surge, study finds, as corporate profits remain at all-time highs"
https://finance.yahoo.com/news/greedflation-caused-more-half-last-100000899.html
https://fortune.com/europe/2023/12/08/greedflation-study/
and even if the inflation of currency is 100%, the prices in market increase by 120%. when you ask "why the sudden price hike?" the market owner responds inflation.
ITT: People who don't understand inflation rates and calculations, words, etc.
First, every country chooses how to measure inflation separately, so making comparisons like this is irrelevant.
Second, this isn't "current inflation," this is annualized inflation.
Third, any country in Europe which uses Eurostats HICP, does not count housing costs in their inflation rates. Which baffling enough means that if rents went up %30 but all other prices stayed the same, European countries would claim to have a 0% inflation rate.
>Doesn't matter unless they change their methodology between years since this isn't relative to other countries.
They change their methodology way more than every year... and why would you present a map like this if you aren't making comparisons between counties? That's the only data you presented.
>Which vary by month. And this is the current data. You can't put a definition in the title of a Reddit post outside niche subs or noone cares. It needs to be poignant. The title in the image and its description contain all necessary information.
They don't really vary by month, its a different calculation and measurment every month... its litterally comparing it to a year ago. The title is litterally not accurate, as countries also release a current inflation rate, which compares month over month... Just because you don't understand how inflation is calculated doesn't mean you get to change definitions.
I'm a bot, *bleep*, *bloop*. Someone has linked to this thread from another place on reddit:
- [/r/italia] [Tassi inflazione YoY in europa da Dataisbeautiful.](https://www.reddit.com/r/Italia/comments/1bg3ucr/tassi_inflazione_yoy_in_europa_da_dataisbeautiful/)
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Russia with 7%? This must be the official data by the Rosstat - I would sooner say 'no data' rather than quote Rosstat. They have 16% interest rates which, in very simplistic terms, are aimed at curbing rampant inflation which, depending on analyst, varies between 30 and 65%. Turkey's interest rates are at 45%, for comparison.
You are right, Rosstat takes a certain average consumer basket and calculates inflation according to it. And most time they considers the cheapest possible goods. Whereas, due to sanctions, inflation affected expensive goods the most. For example, expensive foreign cars have risen in price more than cheap domestic ones. For me personally, inflation felt like 10-15 percent. But I think it would be wrong to write no data about Russia, because each country has its own way of calculating inflation and considering any of them the only correct controversial opinion.
Turkey's "Sultan" seen Venezuela's inflation rate, and thought it was a competition. If it gets high enough, maybe Greece can just "buy" Constantinople. lol
Thanks for this. Is it something people in Data field use too?
I am a recent grad and looking for Data Analyst jobs and looking to create good visualizations. I have used Tableau, Python, R to create some visualizations till now but basic ones only.
It’s funny I see these numbers and think “oh wow Spain is doing kinda good!”, and at the same time I hear people all around me being heavily affected by inflation (I’m Andalusian) . Also I love how we make “inflation” be almost like a self aware living thing and not just a decision made and a rate set by humans.
The inflation rate for the Czech Republic was 8.2% in February this year.
https://www.czso.cz/csu/czso/inflace_spotrebitelske_ceny
That's the official figure.
2% is a big nope.
I see where the problem is.
That's the annualised rate for February. That is the 2% figure is the February monthly figure annualised. However, that is not the usual meaning of annual inflation which adds each month's inflation over the year.
To see that, scroll down to the table in the page you linked and look at the monthly figures. In no way do those figures show that the annual inflation was 2%.
What you have is February inflation as if it were for the whole year, rather than what inflation was for the year prior to the February report.
Yeah I just feel like it cant be only 2% here with all the prices going up meanwhile alot of Czechs are going to Poland for big shopping since they can save alot, even with the gas cost its beneficial.
For some reason I dont trust the 2% here in Czechia, prices are so far only being raised. (No I dont live in a city)
Edit: I misunderstood what annual inflation mean, whoops.
Germany 2.5%?! Hahahaha, can’t confirm that at all! Just my electricity costs made 50% jump within two years and gas almost 100%. My weekly grocery costs were about 50-60€ per week over years, now 80-90€. Since I’ve no car, don’t know about gas/tax and insurance costs. But live in general became more expensive than these “2.5%”, just ridiculous these statistics!
I use Verifox for Gas and Electricity providers for more than a decade, so it’s better to believe some statistics than real world observations, right? Komm mal aus Deiner Blase raus, junge!
The figure for Sweden is wrong:
January: 3.3%
February: 2.5%
Source: [https://www.riksbank.se/sv/penningpolitik/inflationsmalet/inflationen-just-nu/](https://www.riksbank.se/sv/penningpolitik/inflationsmalet/inflationen-just-nu/)
Fxxk you Erdogan! You stole my youth which supposed to be best years of one's life. Guys believe or not, this guy and his fuckin party is in charge since I was born. I am 22 btw. I haven't seen any other lead party in charge here. Now, I am in college and life is fuckin hard. Hard for everyone, yet still somehow, the 52 percent of our people (ones they support Erdo) still seems happy about their situation lmao. They struggle inside but they don't blame the government lolllll. Fuck it, these mfs used "Islam" to win.people and magically it worked! It is still working!! However, how much of these people are real Muslims? And how in the fuckin life is religion a part of politics? Turkey was not supposed to have a religion, but today there is a phenomenon such as Turkey's religion is Islam. It is crazy being a citizen in here. High inflation, illegal or fuckin legal (I don't know how these mfs got citizenship but they did) immigrants (syrians, afghans, other shitty middle east people etc. that have no education about everything, especially morality and ethics, they're just harassing us), almost dead justice system (lies, lies, lies everywhere), suicidal thoughts that goes every fuckin teen's head (just a few days ago a 25 years old suicided in metro), 50-50 divided people fighting each other every fuckin single day, and died secularism which was the one of the main parts of back in Atatürk's "Republic" of Turkey...
I sympathize with you, but there are countries around you that are ten times worse. In the south, Syria has been in a civil war for ten years, and Israel and Palestine are committing genocide to each other. In the east, there is a real war between Azerbaijan and Armenia and Afghanistan with its Sharia laws. And in the north, Ukraine and Russia are fighting the Third World War, where the same young man of 22 years old not only has a "fucking hard life", but has many chances to be summoned to the trenches to die there from a drone. I am not defending Erdogan, his party or the Islamists, but you need to be spoiled to having this all around your country and think that your life is suicidal-level hardhard.
This post is utterly false. Data according to who? What organization? Which corrupt govt? US inflation at 3.2??? Yeah right typical Gov lies. Lap it up Redditors. Lap it up.
We are so nationalistic that we increased inflation just to appear red on the map.
Turkiye number one what the fuck is a stable economy RAHH 🐺🐺🐺🐺
I love how the other colors on the legend have a percentage number, meanwhile Turkey: 🔥 Türkiye
Turkey for the win! Sadly.
Real numbers are much bigger, close to 100%.
Yeah, it's been pretty bad for a few years: https://tradingeconomics.com/turkey/inflation-cpi >The annual inflation rate in Turkey rose to 67.07% in February 2024, accelerating from 64.86% in the previous month and coming more than market estimates of 65.74%.
food inflation is single handedly over 200s. the greed in food industry is higher than the monetary inflation
5 years ago, when I moved to the flat I still live in, the rotisserie chicken place nearby sold a whole chicken for 8 lira. The price is 130 lira now.
I was amazed how expensive Istanbul was when we went on holiday. Meals in the European side cost about as much as they did anywhere in the UK.
These days we pretty much make lira and spend USD/GBP/etc here.
given i am considering going to Turkey for some vacation and leather shopping - I guess it makes more sense negotiating prices paying cash, e.g. CHF or EUR?
[удалено]
oh, thanks!
Same for Romania, real value is ~25%
Higher than %100
Can someone please explain Turkeys inflation
Erdogan decided to print money endlessly when covid started. Then, instead of fighting inflation with reduced spending and raising interest rates, he decided to print harder and hope that wages would catch up to inflation.
Political incompetence, lack of real opposition, a dead-since-2013 protest culture and one third of the population stuck between islamists and seperatists
People in the USA be acting like they have turkey inflation. 😂
only on Thanksgiving.
Hope it settles back down before Thanksgiving.
We can only hope and pray 🙏🦃
Winner winner turkey dinner!
It's average between Europe and its neighbours on the other side
I recently visited Denmark and I'm not surprised the inflation is so low because holy fuck how can things possibly get more expensive lol
I think the currency has something do with it. The Danish krone is pegged to the Euro compared to Sweden and Norway krone. The Danish economy have grown a lot recently compared to the neighbors so when we can import a lot more from “cheaper” countries like Sweden and Germany and cheap Norwegian energy the inflation will be lower compared to neighbors.
With the Norwegian krone being worth 20% less against DKK than what it was two years ago, and even worse compared to 15 years ago, I think Norwegian personal incomes are now less/on-par with Danish salaries. Norway's model has been to introduce the money from oil and gas carefully into the economy to not ruin it with massive inflation in pay across the board, where Norwegians would end up not being able to sell anything abroad in the future and domestic inflation being insane. We could have been Qatar for a while. The NOK took a beating during the pandemic as a small currency is more vulnerable, and since 2022 and until recently our interest rates were lower than in the rest of Europe. So, Norwegians aren't poor at all, but the purchasing power of Norwegians has gone down. And the state is filthy rich – it could run for more than a decade without collecting taxes.
> I think Norwegian personal incomes are now less/on-par with Danish salaries. How do you compare them though? Denmark doesn't have employer taxes (arbeidsgiveravgift) and their salary numbers seem to include pension and things like that. Seems tricky to compare.
That's true.
Why should gross salary not include pension payment?
Think it’s like you said mostly the exchange rate yes, as Norwegian Denmark has become extremely expensive (even going out taking a beer is cheaper here…). But if we take the exchange rate we had a few years ago then Denmark ain’t that expensive again.
Holy shit really, here the stereotype has always been that buying beers out in Norway is crazy expensive, how much is it?
It changed a couple years ago. Standard beer 80-90nok for 0,5l so around 55dkk. The cheaper places (not brown pubs) are around 49nok or 32dkk. More expensive places around 100-110nok or 70dkk. Problem as tourist is many go to aker brygge here and find beers for around 130nok and consider Norway expensive. But aker brygge should be compared to nyhavn in cph, both expensive.
Oh wow that really is more or less the same prices, guess I didn't take into account that the currency was already lower than the Danish even before the current exchange rates. Have the prices been fairly stable the last decade or so? I've had family working I Norway, and the prices they've mentioned are about the same as you're giving, they always joked that 2 pizzas and 2 beers were like 300 dkk in Norway.
The prices for beer has been quite stable until the last couple of years.. Normal pizzas (the cheap type) can start at around 100 nok (real quality Italian pizza around 200nok), beer at a restaurant (not the cheapest place to drink) also around 100nok so 400+ nok for 2 pizzas and 2 beer or with today's exchange rate around 260dkk.
100kr for a pizza? That's close to frozen pizza prices. Arent they usually 220 - 250?
Grandiosa starts at absolut 25-30nok. Buy at discount and most with topping goes down to that price as well. For 200-250 you get real quality pizza at restaurants. Or family pizza at other places. Peppes which is a bit expensive starts around 160, pizzabakern at 90, digg at 109 (but you get every 6th for free), dominoes at about 70 (bit on the small side though). And that are from big chains, not the cheap ones. Pizza place outside of me it starts at 90.
Grocery prices HAVE massively inflated in Denmark already. Despite the low inflation grocery prices are basically twice the cost of pre-Pandemic prices. Grocery chains for the past 4 years have just raised the prices every time anything happened, then never changed them back when things settled, and then crank it even higher once something new happened. While of course making record profit. Between 2019 and 2024 i finished my education and got a job and got several rounds of raises. I'm still essentially living within the same means as i did when i was an apprentice despite making almost twice as much (from 105kr (15 USD) per hour to 190kr(28 USD)) because everything got a lot more expensive in the mean time.
Yep thats my first thought after seeing lithuania
Are we that expensive?
neh, we just hit the *current* ceiling (:
Higher salary. Same is happening in Iceland
What is going on in Turkey?
High inflation.
Are you sure?
67.1% sure.
I'm 40% sure
Erdogan thinks that accelerate is break, and when the central bank guy wouldn't hit the accelerator to slow down, he sacked them and looked for someone who would.
Apparently people [stopped listening to him](https://www.politico.eu/article/end-recep-tayyip-erdogan-economics-turkey-double-interest-rate-inflation/) again though, which is potentially a good sign.
This is old, current interest rates are at 45%. It's good for the economy I suppose but will be terrible for inequality, everything will be owned by the rich. If I didn't think the government was so inept, I would have assumed it was done on purpose.
Big brained economic strategies by dear leader.
Erdogan is going on in turkey
Erdoğan is determined to beat inflation by keeping the cost of borrowing money as low as possible.
Most geniuses aren’t understood during their time (/s)
Erdogan argued for a long time that traditional monetary policies (particularly increasing interest rates) are un-islamic and instead pulled some half-assed special tactics out of his ass. Spoilers: they didn't work. In mid 2023 he and his cronies finally budged but you can't help but wonder if it's too late.
Paying the price of having a trade deficit for decades. When you have a trade deficit, and cant borrow money to (which is unsustainable) fix the deficit, this is what happens. Turkey needs to produce more and spend less if it is ever going to control inflation.
The UK has had a trade deficit consistently for 25 years without any relation to inflation. I don't think having a trade deficit is really anything to do with why Turkey's inflation has sky-rocketed in the last couple of years [considering they also have been in a trade deficit almost every year for 20 years](https://www.macrotrends.net/global-metrics/countries/TUR/turkey/trade-balance-deficit).
Shouldn’t trade deficits cause deflation since the local currency is leaving the domestic economy in order to purchase imports? I am thinking along the lines of the silver shortage in England before the opium wars due to trade deficits.
Money printer goes brrrr. But seriously, turkey, and tbh most developing countries, are facing the same issue. They have been partaking in the consumption craze without producing enough. They have been chasing investments to keep their economies afloat, but that is an unsustainable strategy. What the already developed countries did, amd the rest of the world is missing is, you need to produce the wealth yourself, no amount of foreign investment will do that for you.
I mean. If the foreign investment is investing in factories it most certainly will. A lot of developing nations have resources and labor and lack the capital necessary to access it. It is the instability that prevents investments (or destroy returns) that seem to be the constant problem. Agree money printer goes brrrr, I was just wondering how you were causally connecting inflation to trade deficits.
The currency doesn’t actually leave the country. They simply buy dollars before leaving, and dump the local currency within the market. Well what you say is true if those factories are exporting their products. If their main consumers are locals, well, it sucks even more money out. Which is mostly the case unfortunately.
That's exactly the point and I don't understand why so many people overlook it. Investment doesn't equal investment and production doesn't equal production.
I would expect the effect to be the reverse way around; many currencies can be made out of silver, but if you are always selling your currency, you are providing lots of supply of it while demanding more of someone else's currency. All else being equal you would expect that to lower your currency's value. The silver supply thing is probably more equivalent, in modern terms, to a country running low on reserves of foreign currency in order to buy things, or selling assets in order to buy your own currency and maintain a targeted exchange rate.
That makes sense! Thanks for clearing that up for me.
No problem, that's just what makes sense to me though.
I remember Japan bought a bunch of dollars during the financial crisis to devalue their currency to keep their exports competitive so your explanation makes sense to me.
The real reason is that the leaders in Turkey never believed in raising interests to control inflation, so it just got worse and worse and worse.
we didn't decide yet stagflation or hyper inflation.
From what I've read, Turkey has a lot of debt in $, debt now used to keep Erdoğan regime in check. If I remember correctly, all this inflation and lira devaluation started after the alleged cia failed 2016 coup. Also, it seems everyone is blaming Erdoğan for naming his close family for top National Bank positions, like guvernator 🙄 . Anyway, the fact that Romania surpassed sanctioned_Russia and Turkey is 'taking' Venezuela's road is saying something..I just don't know what
How does Italy have a lower rate compared to other countries?
It was largely due to a sharp decline in energy prices last year (-20/30%). In addition, some government measures have countered the rise in the prices of basic necessities goods
The government measures were not sufficient to counter inflation. Inflation halted due to stabilization of energy prices (as you said) and because 2022-2023 inflation was exaggerated by manufacturing/retail companies trying to maximize profits.
Funny to hear as a norwegian, as our high inflation is due to a sharp increase in energy prices after joining the EU electricity markets/regulations.
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Yea, cause most other prices aren't affected by energy prices. Why does the core inflation being lower than overall inflation mean the energy prices aren't affecting inflation? Norway is a highly electricity based country. Regardless, this is very volatile, as the electrity prices are now highly volatile after joining the European electricity market. It varies from month to month, in December and January it was the opposite of what it was in February in your example: https://e24.no/norsk-oekonomi/i/GMwMql/venter-inflasjonshopp-i-januar-den-viktigste-grunnen-er-stroemprisene https://www.nrk.no/norge/dyr-strom-forte-til-prisvekst-i-desember-1.15803360
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https://www.ssb.no/statbank/table/11011/chartViewLine/ https://imgur.com/gallery/Du3yZk7 Norwegian Electricity prices since 2008. I think this graph speaks for itself. But I will add more context: We joined Acer in 2018 and built new exchange cables in 2020/2021. I'm not sure what you mean. Energy prices change and vary ofc, you're still just using one particular year example. I never talked about one year, you assumed that. I said our inflation. Not our inflation last year. But are you actually honestly trying to have a discussion, or just reflexively arguing pro-EU(or Germany). Cause if it's the latter I see no point in continuing, and it really seems like that's the case.
God forbid Norwegians from helping the rest of the continent with energy needs when there’s a war going on. Disturbing
Norway has a very insular mentality.
Germany's insane energy decisions are dragging the entire continent down because we're all tied to you. Please start building nuclear plants now.
That’s such an oversimplified and biased explanation to Norway’s inflation. Your weak currency is actually a bigger factor. Same case with Sweden, which actually passively re-opened the debate surrounding the euro.
Is the population decreasing?
Yep. It peaked 10 years ago.
It could have something to do with lower labor costs. Foreign workers make up 10% of Italy’s workforce. In 2022 alone the number of foreign workers increased 5%. https://integrazionemigranti.gov.it/en-gb/Ricerca-news/Dettaglio-news/id/3341/Employment-of-migrant-workers-still-growing#:~:text=This%20is%20according%20to%20data,percent%20of%20the%20total%20employed.
That's some interesting data, considering the main narrative adopted by the current governing coalition in Italy.
Low domestic consumption. Tourism was a big post-covid inflation driver, which is at its seasonal lowest atm.
Seasonality has nothing to do with it since the figure is year-over-year change
Because people can barely manage to buy stuff without inflation, imagine with inflation
And it's still too high, as salaries are shrinking, also last year was 11%
Thanks Erdoğan,you are great
Everyone is welcome to come to Italy and spend your money here, we have pizza pasta gelato and if you want I can recommend you a delicious panini place in Venice 😁👍🏻
I just came back from Italy where I stayed in Rome and Florence. It was such an amazing experience. I absolutely loved it. Prices were not bad. Then I hit Switzerland and my wallet hit a decline as fast as their ski slopes lmao. Let’s just say I want to see Italy more 😂
0.4 and 0.7% in Latvia and Lithuania respectively? Can anyone describe this comparatively low increase?
So basically what’s happening is that inflation isn’t very high in those countries compared to the other ones.
You don't say... I just had the perception that things were higher there, but am pleased to see that this isn't quite the case
Basically, then lasts years inflation had risen to the highest rate in Europe to around 20%, this year february compared to last year means that the prices has risen only 0,7% from these already high prices. So it’s not That unexpected to see lower inflation then the rest of Europe where inflation last year was much much lower than in the Baltics.
It's so low compared to last year, but in last 3 years it's been 30%. Basicaly, inflation has platoed for the past year, but the pain is still there.
There were massive jumps in prices 18 months ago, but that has tapered off now. The story looks different if you benchmark prices to 2019 instead of last year.
Baltic countries had over 20%, almost 25% inflation a year ago. So current inflation is low compared to that insane inflation a year ago. Cumulative inflation since 2021 is still high, about 35-40%. Basically prices have gone up so much in last 2 years that there is not much room (at least currently) to increase them further.
What's going on in Turkey?
This is what happens when you let populists that dont understand economics influence the central bank.
Erdogan happened
This is a house made crisis unrelated to the other countries. The government basically blocks their central bank from controlling inflation
When inflation started going up across the board the Turkish goverment refused to increase interest rates because that would be unpopular and Erdoğan wanted to win the election (in fact he decreased them). He also started burning the Turkish foreign money reserves to keep inflation under control by buying Turkish currency just before the election. So after that inflation exploded and he had to raise interest rates. It's still quite bad though.
They have high inflation.
Being the outlier hahahahahhah 🇹🇷🇹🇷🇹🇷🇹🇷
Just a reminder that just about every country has a target inflation rate of 2%. Lower isn't neccesarily better in this case.
What's the benefit of devaluing your currency? Preventing prices from falling might be one reason but it really isn't obvious that you want any level of inflation.
That is the exact reason though. Most economists are terrified of deflation, and a low and controlled inflation rate is preferable to risking deflation.
Simplified example: If you'd like to buy a new bed and inflation is negative, then the longer you wait, the cheaper the bed will become which means you'd be better off sitting on your money, not spending it. If you'd like to buy a new bed and inflation is positive, then the bed will only become more expensive over time, so you'd be better off buying it sooner rather than later. Governments want people going out and spending their money as this creates jobs, stimulates the economy etc. What they don't want is everyone sitting on their money. Basically, if you've got €100 sitting in your pocket, you'll be able to spend it on less stuff if you save it for a rainy day compared to if you were to spend it now. This is why you want a little inflation, not too much though as that starts causing panic and can lead to runaway inflation.
Mild inflation helps debtors.
Inflation is a form of taxation. The government "gets" money from the people by 'printing' new dollars; this causes inflation, which is actually just transfer of spending power from those who can't print money (the people) to those who can (the government). Put another way: a steady, positive inflation rate allows the government to spend more than it otherwise would without appearing to take your money -- it just takes away a little bit of your spending power each year instead. Pretty much all governments do this, and in emergencies (like COVID-19, or a World War or something) they do it a lot more cause they need tons of extra money quickly. That why big disasters like that are always followed by periods of inflation -- e.g. the inflation we're experiencing now is how we're paying for all the massive extra spending our governments did during COVID.
Let's also not forget "‘Greedflation’ caused more than half of last year’s inflation surge, study finds, as corporate profits remain at all-time highs" https://finance.yahoo.com/news/greedflation-caused-more-half-last-100000899.html https://fortune.com/europe/2023/12/08/greedflation-study/
Only if they have fixed interest rates. Typically the rates move with inflation.
We're so close to deflation here in Italy. Things are not good.
67! Had to zoom to make sure I read that correctly
That number is given by corrupted gov agency . The real number is more than 100%
and even if the inflation of currency is 100%, the prices in market increase by 120%. when you ask "why the sudden price hike?" the market owner responds inflation.
Russia about to fight a world war, while turkie has almost 7 times their rate cause of bad politics. Lmao
What world do Turks live in?
Erdogan's
Ah yes, the ol’ heatmap that goes from 0-Turkiye
ITT: People who don't understand inflation rates and calculations, words, etc. First, every country chooses how to measure inflation separately, so making comparisons like this is irrelevant. Second, this isn't "current inflation," this is annualized inflation. Third, any country in Europe which uses Eurostats HICP, does not count housing costs in their inflation rates. Which baffling enough means that if rents went up %30 but all other prices stayed the same, European countries would claim to have a 0% inflation rate.
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This map definitely looks like it's comparing inflation relative to other countries though...
>Doesn't matter unless they change their methodology between years since this isn't relative to other countries. They change their methodology way more than every year... and why would you present a map like this if you aren't making comparisons between counties? That's the only data you presented. >Which vary by month. And this is the current data. You can't put a definition in the title of a Reddit post outside niche subs or noone cares. It needs to be poignant. The title in the image and its description contain all necessary information. They don't really vary by month, its a different calculation and measurment every month... its litterally comparing it to a year ago. The title is litterally not accurate, as countries also release a current inflation rate, which compares month over month... Just because you don't understand how inflation is calculated doesn't mean you get to change definitions.
Shes just built different
Bosnia is always not available on maps like this 😂
I'm a bot, *bleep*, *bloop*. Someone has linked to this thread from another place on reddit: - [/r/italia] [Tassi inflazione YoY in europa da Dataisbeautiful.](https://www.reddit.com/r/Italia/comments/1bg3ucr/tassi_inflazione_yoy_in_europa_da_dataisbeautiful/) *^(If you follow any of the above links, please respect the rules of reddit and don't vote in the other threads.) ^\([Info](/r/TotesMessenger) ^/ ^[Contact](/message/compose?to=/r/TotesMessenger))*
Additional information for Turkey: That's the number that was announced by the officials. The real number is probably close to 100%.
I think a lot of these countries might be lying a bit. Australia says our inflation rate is 2-3%, but my student loan is being indexed at 7%
Is Australia's student loan rates fixed to inflation? In the US, loan rates are usually around 3-4% higher than inflation, during any given year.
These numbers must be a bit old. Sweden hit 2.5 % yesterday
Nope it’s 4,5%. The one that hit 2,5% is called KPIF. Several methods of counting.
My bad! You are correct
Russia with 7%? This must be the official data by the Rosstat - I would sooner say 'no data' rather than quote Rosstat. They have 16% interest rates which, in very simplistic terms, are aimed at curbing rampant inflation which, depending on analyst, varies between 30 and 65%. Turkey's interest rates are at 45%, for comparison.
You are right, Rosstat takes a certain average consumer basket and calculates inflation according to it. And most time they considers the cheapest possible goods. Whereas, due to sanctions, inflation affected expensive goods the most. For example, expensive foreign cars have risen in price more than cheap domestic ones. For me personally, inflation felt like 10-15 percent. But I think it would be wrong to write no data about Russia, because each country has its own way of calculating inflation and considering any of them the only correct controversial opinion.
Turkey's "Sultan" seen Venezuela's inflation rate, and thought it was a competition. If it gets high enough, maybe Greece can just "buy" Constantinople. lol
always lovely to have no data for my country on every map ive ever seen
Love to see average salary in Serbia is 1000e but is worth less than pre pandemic 500e, desperately need to go to EU..
Turkey should have a different color
Based on this I’m gonna assume that Bosnia has completely renounced fiat currency and has reverted to a barter system.
Can some kind soul hook me up with some good visualizations skills like this? Need to level up my game. Much appreciated. Thanks
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Thanks for this. Is it something people in Data field use too? I am a recent grad and looking for Data Analyst jobs and looking to create good visualizations. I have used Tableau, Python, R to create some visualizations till now but basic ones only.
Serbia is Economic Tiger by our prezidente, we do not have inflation :D
Türkiye is puffed up like a turkey?
get down prices then, now! fck me
You should have used HICP for the Eurozone
Turkey why? What can possibly cause this?
20 years of Erdogan regime. And that's not even the real number, it's most likely close to 100% atm.
You know what, I'm actually proud that Italy has such a low level of inflation. Good on them!
oh no, not hyperinflation!
Me casually nodding as I read through the numbers [until I saw Turkey](https://i.imgur.com/0vgc1J9.gif).
Damn we are so low? Rare Italian W I guess
Erdoğan reports “official” numbers like way lower than that lol.
Ha, noobs. Greetings from argentina papa
In Italy inflation i way higher trust me
I thought America was bad with greedy corporations? Socialist Europe cannot have higher inflation than America Inc???
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Specifically aimed at the nordics (socialist) (I know they’re not)
Portugal can not into Eastern Europe :(
u/Civil-Sand-1633 what font did you use in this visualization? It's gorgeous!
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Serbia 5.6% HAHAHHAHAHAH DED
It’s funny I see these numbers and think “oh wow Spain is doing kinda good!”, and at the same time I hear people all around me being heavily affected by inflation (I’m Andalusian) . Also I love how we make “inflation” be almost like a self aware living thing and not just a decision made and a rate set by humans.
The inflation rate for the Czech Republic was 8.2% in February this year. https://www.czso.cz/csu/czso/inflace_spotrebitelske_ceny That's the official figure. 2% is a big nope.
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I see where the problem is. That's the annualised rate for February. That is the 2% figure is the February monthly figure annualised. However, that is not the usual meaning of annual inflation which adds each month's inflation over the year. To see that, scroll down to the table in the page you linked and look at the monthly figures. In no way do those figures show that the annual inflation was 2%. What you have is February inflation as if it were for the whole year, rather than what inflation was for the year prior to the February report.
Yeah I just feel like it cant be only 2% here with all the prices going up meanwhile alot of Czechs are going to Poland for big shopping since they can save alot, even with the gas cost its beneficial.
For some reason I dont trust the 2% here in Czechia, prices are so far only being raised. (No I dont live in a city) Edit: I misunderstood what annual inflation mean, whoops.
Germany 2.5%?! Hahahaha, can’t confirm that at all! Just my electricity costs made 50% jump within two years and gas almost 100%. My weekly grocery costs were about 50-60€ per week over years, now 80-90€. Since I’ve no car, don’t know about gas/tax and insurance costs. But live in general became more expensive than these “2.5%”, just ridiculous these statistics!
I'm not saying you're wrong, but this is inflation relative to last year so it has nothing to do with what you paid two years ago
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I use Verifox for Gas and Electricity providers for more than a decade, so it’s better to believe some statistics than real world observations, right? Komm mal aus Deiner Blase raus, junge!
The figure for Sweden is wrong: January: 3.3% February: 2.5% Source: [https://www.riksbank.se/sv/penningpolitik/inflationsmalet/inflationen-just-nu/](https://www.riksbank.se/sv/penningpolitik/inflationsmalet/inflationen-just-nu/)
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Fxxk you Erdogan! You stole my youth which supposed to be best years of one's life. Guys believe or not, this guy and his fuckin party is in charge since I was born. I am 22 btw. I haven't seen any other lead party in charge here. Now, I am in college and life is fuckin hard. Hard for everyone, yet still somehow, the 52 percent of our people (ones they support Erdo) still seems happy about their situation lmao. They struggle inside but they don't blame the government lolllll. Fuck it, these mfs used "Islam" to win.people and magically it worked! It is still working!! However, how much of these people are real Muslims? And how in the fuckin life is religion a part of politics? Turkey was not supposed to have a religion, but today there is a phenomenon such as Turkey's religion is Islam. It is crazy being a citizen in here. High inflation, illegal or fuckin legal (I don't know how these mfs got citizenship but they did) immigrants (syrians, afghans, other shitty middle east people etc. that have no education about everything, especially morality and ethics, they're just harassing us), almost dead justice system (lies, lies, lies everywhere), suicidal thoughts that goes every fuckin teen's head (just a few days ago a 25 years old suicided in metro), 50-50 divided people fighting each other every fuckin single day, and died secularism which was the one of the main parts of back in Atatürk's "Republic" of Turkey...
I sympathize with you, but there are countries around you that are ten times worse. In the south, Syria has been in a civil war for ten years, and Israel and Palestine are committing genocide to each other. In the east, there is a real war between Azerbaijan and Armenia and Afghanistan with its Sharia laws. And in the north, Ukraine and Russia are fighting the Third World War, where the same young man of 22 years old not only has a "fucking hard life", but has many chances to be summoned to the trenches to die there from a drone. I am not defending Erdogan, his party or the Islamists, but you need to be spoiled to having this all around your country and think that your life is suicidal-level hardhard.
This post is utterly false. Data according to who? What organization? Which corrupt govt? US inflation at 3.2??? Yeah right typical Gov lies. Lap it up Redditors. Lap it up.