Mahfi Eğilmez explains what inflation is

Economist Mahfi Eğilmez evaluated the August inflation data released by TURKSTAT, emphasizing that the decline in inflation does not mean a decrease in prices. Eğilmez stated, "Prices are still rising, but the rate of increase has slowed down."

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Mahfi Eğilmez explains what inflation is

While the August inflation data announced by the Turkish Statistical Institute (TURKSTAT) is being closely followed by economists and the public, economist Mahfi Eğilmez issued an important warning regarding these figures in a post on the social media platform X.

While monthly inflation showed an increase of 2.47 percent in August, annual inflation fell from 61.78 percent to 51.97 percent. Evaluating these data released by TURKSTAT, Eğilmez stated that the decline in inflation should not be confused with a decrease in prices.

THEY ARE BEING CONFUSED WITH EACH OTHER

Emphasizing that a drop in inflation means that the rate of price increases is slowing down, Eğilmez stated, "From the questions I receive, I see that the decline in inflation is still being confused with a decline in prices. When it is said that inflation is falling, it means the rate of price increases is falling; in other words, prices continue to rise, but they are rising more slowly than before."

Eğilmez also noted that the announcement of annual inflation at 51.97 percent was close to his own estimates. With this warning, Eğilmez once again reminded that inflation data must be analyzed carefully and that a fall in inflation does not mean that prices will drop.

News Source: 12punto