Minister Albayrak is uninformed about Turkey’s inflation - economist Stephen Hanke

Renowned applied economist Professor Stephen Hanke on Friday criticised Turkish Minister Minister of Treasury and Finance Berat Albayrak for his comments on the country’s soaring inflation, which officially jumped to 24.5 percent in September. 

Turkey’s annual inflation rate in reality is 78 percent according to own calculations, said Hanke.

Albayrak said on Wednesday that the inflation figures announced the same day had proven the price effects of opportunism, stockpiling, and speculative pricing in the country.

“Finance Minister  Albayrak is not only uninformed about Turkey’s inflation, but clueless about its causes.  He claims “speculative pricing” is the cause.  What a joke,” Hanke said.

Hanke, who teaches at the John Hopkins University in Baltimore, told Ahval contributors Guldem Atabay Sanli and Mark Bentley last month that the Turkish government lacked the credibility to avert a financial crisis because it could not control price increases and a collapse in the lira.

Hanke also said that the only way for Turkish President Recep Tayyip Erdoğan to regain credibility was to stop the currency crisis, stop inflation, and the only way he could do that was with a currency board.