‘Increase in inflation proves speculative pricing is a reality” - Berat Albayrak
Turkish Minister of Treasury and Finance Berat Albayrak said that the inflation figures for September proved that Turkish governments warnings on stockpiling and speculative pricing was not a perception but a reality, during an interview with NTV on Wednesday.
Turkey’s year-on-year consumer inflation rate rose to almost 24.5 percent in September, while the producer price index jumped to 46 percent, Turkish Statistical Institute announced on Wednesday.
Albayrak said that the announced inflation figures were over market’s expectations and the estimations of the Turkish central bank.
In Turkey currency depreciation has fuelled inflation for several years - according to latest data impact on producer price inflation has been especially sharp in August, with producer prices rising by a third year on year - inflation looks set to accelerate further this year pic.twitter.com/k91nRoRBBX— Agathe Demarais (@AgatheDemarais) September 3, 2018
“We have seen this clearly, those figures have shown that the price effects of opportunism, stockpiling, speculative pricing, which we have intensively mentioned, are actually not a perception but a reality. Of course, those figures demonstrated that we have to tackle this problem more seriously. It means that we will struggle with goods priced in that way more intensely,” Albayrak said.
The Minister said that he would have meetings with representatives of different sectors, particularly with those that had a dominant effect on price levels, this week and would likely announce a plan for an all-out struggle against inflation next week.
“September was the month the worst happened. We have experienced a period of speculative attacks on exchange rates, but we have beaten them off,” said Albayrak, adding that the steps to be taken in October will stabilise the economy.
“With the process to take start in October, we believe that the figures will converge to those targeted by the end of the year. We are going to take steps. We believe that the trend in inflation will reverse in October,” he said.