Turkish Inflation Set to Decline Sharply Soon, Albayrak Says
Turkish inflation will “decline significantly” in the coming months, Treasury and Finance Minister Berat Albayrak said as he sought to play down a series of geopolitical concerns that have weighed down on the lira.
Speaking on CNN Turk television, Albayrak said inflation was already on a downward trend thanks to base effects, while the summer months will bring “increased foreign currency revenues via tourism.”
Turkey’s headline consumer price index came in at an annual 19.5% in April, down from its October peak of over 25%, but still well above the central bank’s year-end forecast of 14.6%.
The lira has been the worst performer among emerging market currencies this quarter, as a disputed mayoral election in Istanbul and the threat of U.S. sanctions over its purchase of the S-400 missile system from Russia take their toll on the currency.
Here are some other key points from the interview:
- The government is to announce a loan package for manufacturers and exporters later in May or in June
- Minister says Turkey is “better equipped” to face volatility than eight months ago
- The process of eliminating the current account deficit is “proceeding quickly”
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