Turkey Inflation Woes Pit Tenants Against Landlords

Disputes between homeowners and tenants have risen sharply in Turkey after annual inflation reached nearly 50 percent in January Amir MAKAR AFP/File
Disputes between homeowners and tenants have risen sharply in Turkey after annual inflation reached nearly 50 percent in January Amir MAKAR AFP/File
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Turkey Inflation Woes Pit Tenants Against Landlords

Disputes between homeowners and tenants have risen sharply in Turkey after annual inflation reached nearly 50 percent in January Amir MAKAR AFP/File
Disputes between homeowners and tenants have risen sharply in Turkey after annual inflation reached nearly 50 percent in January Amir MAKAR AFP/File

Disputes between homeowners and tenants have risen sharply in recent months in Turkey after annual inflation reached nearly 50 percent in January, the highest since April 2002 and may well reach a new peak on Thursday when new monthly data will be published.

In the same period, rents have exploded by 85 percent in Istanbul and by 69 percent at the national level, according to analysis by Bahcesehir University.

But salaries have not risen at the same pace, with most increasing by between 30 and 50 percent on average in January.

"We shouldn't have had to leave," lamented 30-year-old Erdem Yilmaz , who works as a receptionist, upset at his former landlord who claimed he wanted the property back for his son.

"He harassed us. My family had no peace," AFP reported Yilmaz as saying.

Yilmaz is even angrier because he said the landlord's son did not move into the apartment.

"I saw an advert (for the flat) on the internet a week after we left," he said, showing a photo of the advert.

The rent is now 2,600 Turkish liras ($190, about 170 euros), compared with the 1,100 liras ($80) paid by Yilmaz.

To add insult to injury, Yilmaz's new home will cost him 2,000 liras ($146), half of his salary, and is located in "a remote corner, in an old building that is hard to heat and without a lift," he said.

Yilmaz's dispute has not hit the courts but legal cases between tenants and property owners are now the biggest single issue processed by Turkish courts.

They represent 20 percent of cases, compared to 10 percent a year ago, according to financial daily Dunya.

President Recep Tayyip Erdogan's unorthodox policies, as well as the weakening lira are contributing to inflation.

Central banks normally raise rates to tame inflation but Erdogan vehemently opposes high interest rates, claiming they are the "mother and father of all evil" and cause high inflation.

The Turkish lira lost 44 percent of its value against the dollar last year.

AFP spoke to 12 tenants who described being forced to leave their apartments in the same way as Yilmaz, or who have suffered rent increases of over 100 percent, five times higher than the legal limit in Turkey.

Turkish law stipulates that, under a tenant's contract renewed in February, a landlord cannot increase the monthly rent above 22.6 percent, a figure calculated using base inflation.

The law also restricts evictions, but tenants said they gave in to pushy or threatening landlords.

In January, an Istanbul man in his 90s was filmed by a neighbor using an axe to break down his tenants' door after they refused to pay their rent, which suddenly rose from 1,200 to 4,000 liras.

"The rise in rents is pushing property owners to seek the recovery of their homes to put them back on the market" at distinctly higher prices, according to lawyer Hanife Emine Kara, a specialist in real-estate law who has seen the number of cases rise.

Property owners pushing for three-figure rent increases argue that official inflation data does not reflect the reality, a claim supported by some independent Turkish economists who say inflation reached over 110 percent in January.

"We live in a period in which owning a home or renting cheap accommodation is a luxury," said Mehmet Bulent Deniz, head of the Turkish Consumers Union Federation.

However, some landlords try to find a balance.

"We have agreed to 35-percent increases. There needs to be a happy medium," said Hakan Yildiz, who owns three properties in Istanbul.

Some tenants, such as Emrullah Comran, refuse to accept, on a matter of principle.

In January, Comran's landlord wanted to increase his rent by 58 percent.

"I'm in a good financial situation, I could have paid but I refused because they did this in an illegal and opportunistic manner," said the 30-year-old, who runs a small metalworking business in Antalya, southern Turkey.

"We have 12 employees and we gave them a pay rise of 45 percent on average this year. But no one has received a 58-percent raise. Nobody," he insisted.

In response to his landlord, Comran sent his rent by wire transfer with an increase he set himself.

"The official rate is 22.6 percent, so I went a little above that, to 23 percent," he said.

"I have not heard back from them yet."



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.