Turkiye's inflation to fall in summer when tensions ease: Minister

17 Mar '22

2 min read

Pic: Shutterstock

Inflation in Turkiye will start falling this summer, according to treasury and finance minister Nureddin Nebati, who recently predicted that global tensions will ease as well. Inflation in the country soared to 54 per cent in February, primarily due to a surge in global commodity prices driven by the Russia-Ukraine war and last year’s decline in the Turkish lira.

Russia's invasion of Ukraine is adding to inflationary pressure in the country and could widen the current account deficit, according to a report in top Turkish English-language daily.

Though economists foresee inflation rising further in the months to come, Nebati struck a more optimistic note when he spoke to investors in Cannes, France.

"The tensions in the world will not continue. As of summer months, especially as of the end of the year, we're going to see the fall (in inflation) and the quick normalisation altogether," he said.

Nebati said Turkey is determined to lower inflation to single digits by the time elections scheduled for June 2023 take place.

The lira declined by 44 per cent against the US dollar last year and followed an easing cycle that saw the central bank cut its policy rate by 500 basis points to 14 per cent.

The cuts followed a new government economic programme that prioritises exports, credit, growth and employment.

ALCHEMPro News Desk (DS)

More Textiles News - Turkey...