Turkish FinMin Simsek: Oil and food prices to support disinflation, weak TRY is risk

By bne IntelliNews February 18, 2015

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

Turkish authorities reportedly plan to curb interest rate race for deposits

Turkish authorities are set to step in to end a potentially dangerous race among the country’s banks to attract deposits, fearing the aggressive strategy may hit the economy through higher lending ... more

Erdogan, Putin discuss deepening strategic relationship

Turkish President Recep Tayyip Erdogan and Russian leader Vladimir Putin on May 27 confirmed in a telephone call “the aspiration for further development of the strategic partnership,” the Kremlin ... more

Ankara bans all "protests" after dark, includes press events and group singing

Ankara has banned all "acts of protest" after dark. The wide-ranging ban, announced on May 26, even forbids press events, group singing and the shouting of slogans in public places after ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss