Turkey released inflation data analyzed by the Turkish Statistical Institute showing inflation is at a two-decade high with the consumer-price-index (CPI) rising almost 70%, which is a problem bitcoin can fix.
Transportation, which would include the prices of fuel, suffered an annual rise of 105.86%. Meanwhile, food and nonalcoholic beverages rose 89.10%, paired with a 77.64% annual increase for furnishings and household equipment. These were among the highest vectors reported, but even the lowest numbers are staggering.
Citizens of Turkey experienced annual increases of 35% for healthcare, 27% for education, 26% for clothing and footwear, and 18.71% in communication. These were among the main groups of goods and services that experienced the lowest amounts of inflation.
The lira’s month-over-month inflation rate saw a 7.25% increase. Turkey’s local currency has been in freefall for some time as President Recep Erdogan refrains from increasing interest rates, which is a standard tool used by central banks to lessen the burden of inflation.
Erdogan has reportedly referred to raising interest rates as “the mother and father of all evil,” according to BBC.
This issue of inflation data failing to be accurate was pointed out by the pro-bitcoin CEO of MicroStrategy, Michael Saylor when he stated:
“Inflation is a vector. A scalar index can be biased by choosing certain items. Your index assumes human beings don’t need food, energy, or home ownership, nor desire assets such as property, equity, bonds, or commodities.”
Bitcoin seeks to restore economies by separating economic controls from centralized entities who artificially increase the money supply to benefit their own regimes through a permissionless, peer-to-peer protocol that does not allow malicious practices commonly witnessed on the world stage.