Erdoğan on rising cost of living: 'The problem is not economic but psychological'

Turkish President Erdoğan has argued that there are price gaps for the same products in different service providers, indicating that the cost of living crisis “is not economic but psychological.”

Wednesday September 06 2023 05:30 pm

Duvar English

Turkish President Recep Tayyip Erdoğan on Sept. 5 deemed the cost of living crisis “not economic but psychological.”

Speaking after the cabinet meeting, Erdoğan said “There is a high price increase (for products). Every increase in the wages of the employees is reflected in every service before (they receive the increased wage). There are cases where the price gap for the same product and service in different places is very wide. This indicates that the problem is not economic but psychological.”

“Despite the earthquake disaster and the shrinkage in global trade, the (economic) growth success we achieved ensured the protection of employment and production. Many international organizations have started to revise their forecasts for our country's 2023 growth upwards. Since some of the international organizations have malicious intentions and some cannot grasp our potential, they explain low figures in every field,” Erdoğan argued.

The 69-year-old leader said “It is this toxic climate that derails those who harm our fight against inflation by charging exorbitant prices for houses, cars and services. We fully believe that we will bring inflation to its knees. As the state, we are struggling with the psychological factors that fuel the cost of living and those that reflect this situation on the prices, and on the other hand, we carry out policies that will reduce inflation with determination.”

The government-run Turkish Statistical Institute (TÜİK) reported an annual inflation rate of 58.94 percent in August, whereas the independent inflation group ENAG put the figure at 128.05 percent. Millions of Turks cannot make ends meet due to soaring inflation and increasing cost of living.