Treasury and Finance Minister Berat Albayrak stressed that the Turkish economy will see inflation drop in the last quarter of the year as a result of the government’s expansive efforts to mitigate inflation and economic rebalancing. In a bid to combat inflation, the Turkish government launched a campaign last week by recruiting the private sector and banks. Called the “Full-Scale Fight against Inflation,” the program offers price discounts in the retail sector, including food and textile, no increase in electricity and gas bills, and lower interest rates for bank loans. Among the measures announced to curb inflation was a campaign for a minimum price cut of 10 percent nationwide.
To support businesses and maintain investments, banks will decrease interest rates by 10 percent on loans issued after Aug. 1, Albayrak said yesterday. According to the latest reports, more than 500 companies have so far joined the anti-inflation campaign. “In combating inflation, we will continue to maintain the downward trend with figures first in October and then in November and December, and we will collect the fruits of this fight together in the entire economy,” he said. In September, inflation hit 24.52 percent on a year-on-year basis, up 6.3 percent from the previous month, according to the Turkish Statistical Institute (TurkStat). Inflation climbed for a sixth straight month, hitting the highest level in almost 15 years. October’s inflation figures will be announced on Nov. 3.
As noted in Turkey’s New Economy Program (NEP) announced last month, the country’s inflation rate target for this year is 20.8 percent. The target for next year is 15.9 percent, 9.8 percent for 2020 and 6.0 percent for 2021.”At the end of this process, which we started to support with structural steps, we will see together that we are saving our economy from two shackles called inflation and interest step by step,” he added