Turkey’s Albayrak expects single-digit inflation this month

Turkish Treasury and Finance Minister Berat Albayrak said he expected annual inflation to slow sharply in September.

Indicators clearly show that both consumer price inflation and producer price inflation will ease to single figures, Albayrak said in a speech on Thursday, according to local media including Dünya newspaper.

Turkish inflation is slowing after a currency crisis last year battered demand for goods and services, forcing manufacturers and retailers to curb price increases. The annual consumer price inflation rate dropped to 15 percent in August from 16.7 percent in July. It had stood at a 15-year high of 25.2 percent last October.

Albayrak’s prediction differs from the estimates of most economists, who say that inflation could slow to single figures in October before accelerating again.

The minister said that the government will most probably announce a new economic programme for the years 2020 to 2023 later this month.

Measures the government has taken since last year’s financial turmoil means Turkey’s economy is among the best protected against any global economic instability and trade wars conducted by other nations, Albayrak said.

The effects of cut in interest rates of 325 basis points by the central bank – the main rate now stands at 16.5 percent, will be seen in the days ahead, the minister said.

Turkish economic growth, which shrank in the first quarter on an annual basis, is expected to end the year in positive territory, Albayrak said.