Gov’t taking steps to bring down inflation rate: Zeybekci

Gov’t taking steps to bring down inflation rate: Zeybekci

Gov’t taking steps to bring down inflation rate: Zeybekci

Turkey’s Economic Coordination Committee, under the chairmanship of Prime Minister Binali Yıldırım, has taken steps to decrease the inflation rate to single digits, Economy Minister Nihat Zeybekci said on June 6. 

“The released inflation figures were, of course, not the numbers we were predicting for the first half of the year in the medium-term program,” Zeybekci stressed, referring to the rise in inflation posted in May.

“We will raise product supply, support greenhouses, minimize agricultural production losses, and avoid speculation,” he added, as quoted by state-run Anadolu Agency.

Zeybekci said they would regulate processes of classifying, packing, storing, and transporting products to reduce losses, adding that inflation stems from the paucity of production and supply, not from demand surplus.

“The fight against inflation is the top priority for us. We never choose between ‘growth or inflation’ ... Both are absolutely indispensable for us,” he added.

The country’s annual inflation rate was 12.15 percent in May, up from 10.85 percent in April, according to the Turkish Statistical Institute.

Zeybekci also underlined that incentives will support investments in order to reduce foreign dependency.

A 135 billion Turkish Lira ($33.6 billion) incentive package, which will support 23 projects by 19 selected Turkish firms, was revealed in April.

It is expected that the incentive package will narrow Turkey’s current deficit by nearly $19 billion as they are expected to boost exports by $6.3 billion and cut imports by $12.3 billion.