Turkey to cut taxes in battle against inflation – minister

Turkey will take measures such as tax cuts to slow inflation, Finance Minister Naci Ağbal told NTV television.

The acceleration in inflation, which climbed to 12.2 percent in May from 10.9 percent in April, is set to continue in the coming months, Ağbal said on Wednesday.

Inflation, much of which is cost-induced, is expected to remain at 2017 levels, he said.

Turkey’s government has cut taxes and implemented other measures such as loan guarantees and financial amnesties to boost economic growth. The steps have raised concern that the economy is overheating, prompting downgrades from major credit rating agencies.

Ağbal didn’t provide specific details about the proposed tax cuts and how they might positively impact inflation. Tax reductions usually spur demand in an economy.