While German savers fear the loss of value of their money in the face of inflation rates of around 5 percent, inflation in Turkey is getting increasingly out of control: In December, the inflation rate jumped over the mark of 30 percent and reached its highest level year-on-year at 36.08 percent for around two decades.

The Turkish statistical office announced on Monday in Ankara.

Analysts were surprised by the strength of the price hike.

They had expected a good 27 percent.

The rate has more than doubled since the summer.

The increase in the cost of living has recently been driven by higher food prices.

From November to December alone, the rate of price increase was 13.6 percent.

In December, producer prices even rose by 79.89 percent year-on-year and thus also much more strongly than expected.

The prices that producers charge for their goods will likely, with some delay, at least partially affect consumer prices.

Erdogan makes the situation worse

The rapid decline in the rate of the Turkish lira, which goes hand in hand with inflation, makes it more expensive to import goods into the country.

In addition, there are comparatively high raw material prices on the world market.

This is one of the reasons why the country is in a difficult economic situation, which is also reflected in high unemployment.

The situation has been worsened for months by the Turkish central bank, which, under pressure from Turkish President Recep Tayyip Erdogan, has recently continued to lower the key interest rate despite high inflation.

Central bankers are actually bracing themselves against galloping inflation with higher key interest rates.

In the foreign exchange market, the Turkish lira came under further pressure on Monday.

In return, the dollar and the euro appreciate by around two percent each to 13,646 and 15,423 lira, respectively.  

Expensive package of measures is intended to protect savers

Shortly before Christmas, Erdogan announced a comprehensive package of measures, the most important element of which was a state guarantee for private savings against exchange rate losses. As a result, the Turkish lira initially recovered a little after a dramatic crash. The central bank has cut the key interest rate in several steps from 19 to 14 percent since the summer and wants to lower the rapid inflation rates in this way - according to the usual doctrine, however, it would have to do exactly the opposite. 

In a further measure announced by President Erdogan, the government is assuring companies to help them hedge against the risks of high exchange rate fluctuations.

Other measures specifically promote export-oriented companies and generally relieve companies.

After speculation about the introduction of capital controls, Erdogan said Turkey had neither the intention nor the need to "take the slightest step away from the free market economy" and free currency exchange.

How all the measures will be financed is questionable.