STORY: Türkiye's inflation cools as consumers stay on their toes
SHOOTING TIME: July 3, 2024
DATELINE: July 4, 2024
LENGTH: 00:03:03
LOCATION: Ankara
CATEGORY: ECONOMY

SHOTLIST:
1. various of people on the streets
2. SOUNDBITE 1 (Turkish): NACI CESME, Retiree
3. SOUNDBITE 2 (Turkish): CAGATAY ZINCIRLIOGLU, Tourism agency manager
4. SOUNDBITE 3 (Turkish): FIRAT ALTUNDAG, Clothing shop owner

STORYLINE:

Türkiye's inflation is on a falling trend for the first time in eight months, marking what appears to be the beginning of a long-anticipated and sustained disinflation. However, consumer sentiment remains unimpressed despite the improvement.

Annual inflation slipped to 71.6 percent in June, down from a peak level of 75.45 percent in May, the country's Statistical Institute announced on Wednesday.

However, according to a survey conducted by the Ankara-based ORC polling company and published on June 26, nearly 70 percent of respondents said they are pessimistic about the future of the economy.

Despite pressure from the opposition, ruling Justice and Development Party officials have ruled out an interim hike to pensions and the minimum wage, earned by millions of workers in Türkiye, stressing that it would fuel inflation.

The minimum wage was equivalent to 578 U.S. dollars in January when it was increased by 49 percent and is now valued at 515 dollars because of the depreciation of the Turkish lira against hard currencies.
   
Millions of retirees are also hard hit by runaway inflation.

SOUNDBITE 1 (Turkish): NACI CESME, Retiree
"I went to a store to buy something for my grandson, and I noticed price hikes compared to previous weeks. The cost of living is extremely high, inflation is not dropping. Electricity prices were hiked, and gas prices will increase, too. Food prices are very high, and everybody has to eat to survive. I am one of those who have no hope for the economy. I do not believe that inflation will decrease." 

SOUNDBITE 2 (Turkish): CAGATAY ZINCIRLIOGLU, Tourism agency manager
"High food prices also affect the tourism industry. Food is something that people cannot change, they need to consume it to stay alive."

SOUNDBITE 3 (Turkish): FIRAT ALTUNDAG, Clothing shop owner
"High cost of living will continue. It has been this way since the pandemic and will continue. The purchasing power of consumers has declined considerably, and I can see it in my business as clients are purchasing less. As the cost of our products rises, we have to adjust our retail prices accordingly, which leads to customer dissatisfaction. We find ourselves having to raise prices every month, which results in complaints from our clients. This situation has had a significant impact on us. The government should enhance the purchasing power of people by increasing wages and pensions."

Türkiye has been struggling with rising inflation and one of the worst cost-of-living crises of its history, leading President Recep Tayyip Erdogan to reverse interest rate hikes to combat inflation in June 2023.

The central bank has since raised its key rate from 8.5 percent to 50 percent, making borrowing more costly to cool down the economy.
   
While the official year-end inflation is forecast at 38 percent, most economists believe it will end up higher. 

Xinhua News Agency correspondents reporting from Ankara.
(XHTV)