President Recep Tayyip Erdogan’s Justice and Development Party’s (AKP) Party is in trouble. The lira is crashing and nearing 15 for the first time ever. Inflation is out of control, and Erdogan has discouraged panic hoarding as consumer prices accelerate.
A collapsed lira and soaring prices are primarily due to Erdogan, who forced the country’s central bank to unleash a series of hefty interest rate cuts in September. That triggered a cascade in the selling of the lira and a surge in inflation.
So far, Erdogan’s “new model” to revive the economy is faltering. People are panic hoarding, forcing prices of goods even higher, which resulted in AKP on Wednesday to present Parliament with a proposal for a new bill calling for increased fines against hoarding of food and other goods.
Turkish police targeted dozens of people this week that are accused of stockpiling new cars to boost prices far higher than dealership prices, according to state-run media Anadolu Agency.
Erdogan ordered the arrest of 51 people involved in the scheme that purchased new cars, which lowered dealerships’ inventories and led to price increases.
Local media reported the people bought goods such as cars amid a surge in prices to protect themselves from soaring inflation and preserve their wealth amid a crash in the lira. The government alleges the suspects had intentions of “creating a monopoly” in the new automobile market.
In a written statement made by the Karabük Chief Public Prosecutor’s Office, it has been stated that “zero kilometer cars cannot be found in dealers, the cars that should be in the dealerships are collected and stocked by dealers and unofficial car buyers, and a monopoly is created in the “zero kilometer” automobile market, both in print and visual media. It was stated that an investigation was launched on the news that the cars collected from dealers in the monopoly market and stocked are manipulated far above the dealer list prices, and that unfair profits are tried to be obtained by selling them on advertisement sites at exorbitant prices, and citizens are victimized. – Anadolu Agency
The arrests come as consumer price inflation soared to an annual 20.7% in November, with food prices rising 27.1%.
The rise in prices has been primarily driven by a record slide in the lira as Erdogan’s build-back better plan is failing. Turkish people are flooding into assets or commodities to shield their wealth from the economic implosion. Now it appears the government wants to go after these people.
