The declines in food and oil prices will support disinflation this year, Turkey’s finance minister Mehmet Simsek said on February 18, adding that TRY’s weakness is the only risk for inflation.
The fight against inflation must continue until inflation falls to 5% or below permanently, said Simsek, adding that discussions over the Central Bank’s policies may cause concerns among investors. Taking the price stability into account, the Central Bank must make decisions on a rational basis, Simsek noted.
The Central Bank has been targeted by President Recep Tayyip Erdogan and economy minister Nihat Zeybekci for not cutting interest rates to boost economic growth. Recently, Deputy PM Ali Babacan, the economy czar, voiced support for Central Bank bureaucrats. There is a highly competent team at the Bank who are making the right decisions at the right time, Babacan said.
| January CPI by Main Expenditure Groups (%) | |||
| Weights | m/m | y/y | |
| Headline | 100 | 1.10 | 7.24 |
| Food and non-alcoholic beverages | 24.25 | 3.52 | 10.97 |
| Alcoholic beverages and tobacco | 4.82 | 4.19 | 4.40 |
| Clothing and footwear | 7.38 | -6.98 | 9.14 |
| Housing, utilities | 15.79 | 1.13 | 7.50 |
| Furnishings, household equipment | 7.78 | 2.01 | 8.54 |
| Health | 2.57 | 1.49 | 8.23 |
| Transportation | 15.38 | -0.56 | -0.99 |
| Communications | 4.38 | 0.94 | 3.18 |
| Recreation and culture | 3.54 | 1.64 | 6.08 |
| Education | 2.53 | 0.02 | 8.27 |
| Hotels, cafes and restaurants | 6.98 | 0.90 | 13.06 |
| Miscellaneous goods and services | 4.60 | 2.52 | 9.77 |
| Source: tuik | |||
Related Articles
Kurdish official estimates Iraqi oil losses at $28bn
The 18-month suspension of oil exports from Iraqi Kurdistan has cost the state more than $28bn in lost revenue, a senior Kurdish official has said, as the fiscal damage is compounded by security ... more
Turkey’s Şahinler invests $100mn in Egypt’s garments and tourism sectors
Turkish group Şahinler Holding is expanding its operations in Egypt with new investments exceeding $100mn across the ready-made garments and tourism sectors, Al Sharq Business reported on August 27, ... more
Turkish government plans special "People's Aisle" sections in markets for cheaper products
A new government-backed initiative called “Cumhur Reyonu” (“People’s Aisle”) will be rolled out across Turkey’s major supermarket chains, which collectively operate over 55,000 branches ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
23 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
Hungarian economy faces weak growth, slow path to price stability, central bank report shows
2 months ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago