Turkish businesses and households are struggling to cope with the dizzying inflation about 80%. Turkish authorities raised its price yesterday electricity and his natural gas by 51%, with the largest increase, about 50%, coming from the country’s industry, and Turkish household accounts will increase by 20%.

The decision was announced by the energy regulator and state energy company BOTAS just hours before the statistical office reported on developments on the inflation front that are estimated to have pushed the index to levels above 80% in August, even with the official embellishment. After all, this is not the first increase in prices for electricity and natural gas. AT Turkey natural gas prices for households have increased by a total of 174% over the year, while for small and medium-sized enterprises the growth reaches 277%, and for large industrial groups – 379%.

BOTAS reiterated, however, that the state still subsidizes gas prices for households by over 80%. Hours earlier, opposition leader Kemal Kılıçdaroğlu had warned the Turkish president against further increases in electricity prices. “Don’t even think about raising electricity prices again,” he said to Tayyip Erdogan, and concluded: “People have nothing to eat, nothing more to give.”

Turkish household accounts will increase by 20%.

This will literally be a blow to Turkish households, who are struggling to survive and are not enjoying in the least the impressive recovery of the Turkish economy after the lifting of anti-pandemic restrictions. The day before the price increase, data was released showing Turkey’s economy expanded 7.6% in the second quarter of the year, beating economists’ forecast of 7.4%. Turkey’s exports, which appear to be underlined by the Turkish president’s policy of low interest rates and a cheap, nearly devalued currency, increased by 16.4% year-over-year, while government spending rose by 2.3%.

Turkey’s $800 billion economy is growing faster than other G20 economies and rose to $828 billion in the second quarter from $793 billion in the previous quarter. This is largely due to consumer spending, which remains high, but primarily to tourism. Tourism in the neighboring country has risen sharply since the lifting of restrictive measures against the pandemic. According to official figures, the country’s income from tourism has grown by 100%. At the same time, domestic demand continues to support the Turkish economy, with household consumption up 22.5% in the second quarter compared to the same period last year.

However, from the third quarter, Turkey’s dynamic growth is expected to slow down, and rapidly.