The Turkish Agriculture Inflation of Post Keynesian Perspective

As of 2014, the real inflation rate in Turkey is over the inflation target of five percent. An increase in agricultural product prices are being holded responsible for the deviation of inflation from the target. However, it is claimed that this increase is temporary due to the unfavorable weather conditions. In this study, it has been searched for Turkish agricultural sector whether the increase in agricultural product prices is temporary or not under the framework of the distribution relations. At the same time, distribution relations and agricultural product prices are discussed within the Post Keynesian framework. The distribution data between farmer and intermediaries is counted by a macro data such as the difference between investments and savings. As a result of the calculation for 2002-2013, intermediaries’’ profits increased by 13% but farmers’ incomes diminished by 6%. It is concluded in this study that the agricultural supply would diminish but prices would increase permanently if the distribution process continues within the agricultural sector by this way.