Deteriorating pricing behavior in Turkey may push up inflation: Central Bank chief
Turkey’s risk of higher inflation has risen due to deteriorating “pricing behavior,” even though domestic demand has weakened, Central Bank Governor Murat Çetinkaya said in the text of a presentation on Oct. 12.
While external demand remains strong, the slowdown in domestic demand is sharpening, read the text of Çetinkaya’s presentation at the IMF and World Bank Group meetings in Bali.
“Deterioration in the pricing behavior poses upside risks on the inflation outlook, despite weaker domestic demand conditions,” read the text.
Exchange rate depreciation has increased inflationary pressures, Çetinkaya noted, while adding that demand conditions were expected to limit upside risks on inflation.
In his presentation, Çetinkaya also said rebalancing economic activity has become significant.
Over the past five years, annual inflation saw its lowest level at 6.13 percent in April 2013, while the figure reached its highest level this September.