Turkish Inflation Set to Decline Sharply Soon, Albayrak Says
Turkish Inflation Set to Decline Sharply Soon, Albayrak Says
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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”
To contact the reporter on this story: Baris Balci in Istanbul at bbalci4@bloomberg.net
To contact the editors responsible for this story: Onur Ant at oant@bloomberg.net, Nick Rigillo, Neil Chatterjee
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