Abstract
High inflation is among the undesirable conditions for the economies of countries in terms of macroeconomics. Inflation is generally seen in economies for two different reasons. These can be listed as demand-pull inflation and cost-push inflation. The objective of the study is to investigate the source of inflation in Turkey. For this purpose, monthly producer price index and consumer price index series for the period of January 2006 and July 2021 were used. First, the stationarity of the variables was analyzed with the Generalized Dickey Fuller Unit Root Test. Then, the Granger Causality Test was applied to the variables. As a result of the analysis, a one-way causality relationship from producer price index to consumer price index was determined. This shows that inflation in Turkey is generally caused by costs. For this reason, the implementation of cost-oriented policies to combat inflation will contribute more to the decrease in inflation.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
