If you think house prices have been out of control in the UK, things can get far more extreme – as Turkey’s house price inflation demonstrates.
The country has seen house price growth of 160.6% against an inflation rate above 80.21% in August.
Similarly to the UK, the Russia-Ukraine invasion has stoked inflation, while Turkey inexplicably also cut its national interest rates to 13% in August, as its president Recep Tayyip Erdogan believes that cheaper borrowing costs can slow inflation instead of pushing it higher.
According to Knight Frank’s Global House Price Index Turkey’s annual house price growth stands at 45.9% when you take the rapid inflation into account.
Turkey’s government argue that inflation will fall in the final months of 2022 as part of its new economic model.
Nureddin Nebati, the country’s finance minister, wrote on Twitter in response to Monday’s data “In the months ahead, we will witness inflation losing speed even more.
“We will drive high inflation out of these lands, never to return again.”
The Turkish authorities announced fresh price hikes on gas and electricity on Sept. 1, at around 20% for households and around 50% for enterprises.
Government forecasts released on Sunday say inflation will ease to 65% by end-year.
