Turks boycott restaurants over high prices

This past weekend witnessed an unprecedented movement in Turkey as numerous locals boycotted cafes and restaurants to protest "exorbitant prices." This first-of-its-kind action in the country, which has been caught in an inflationary spiral for several years, signals a growing public dissatisfaction with the economic situation.

In major cities like Istanbul and Ankara, certain districts saw a noticeable decline in local patronage at cafes and restaurants during the boycott. 

However, establishments in tourist-favored areas continued to see relatively normal traffic, primarily filled by visitors rather than locals. This contrast highlights the uneven impact of the boycott across different sectors of the economy.

Despite having lower average salaries compared to most European countries, the cost of many goods and services in Turkey has recently approached and sometimes surpassed those in Europe. This discrepancy has placed significant pressure on Turkish consumers, contributing to widespread economic discontent.

Contrary to traditional economic theories, the Turkish President has long advocated for lower interest rates even amid inflation surges, leading to a rise in prices and the devaluation of the Turkish Lira, according to analysts. 

Following his reelection in May 2023, the central bank was allowed to raise its main policy rate to 50% in March, indicating a possible shift towards more conventional monetary policies.