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HomeVideoBloomberg: Turkey Inflation Decelerates at Steepest Since 1995

Bloomberg: Turkey Inflation Decelerates at Steepest Since 1995


Turkish inflation slowed the most in more than a quarter century as consumer prices rose an annual 64.3% in December, down from 84.4% the previous month. Onur Ant has the details on Bloomberg Television.

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Transcript

Let’s talk about turkey and inflation there decelerated at its steepest pace and more than a quarter Century consumer Prices rose at an annual 64.3 percent in December that’s down from 84.4 percent in the previous month at all according to data released by the government today joining me now is Bloomberg’s turkey

Bureau chief owner on so owner how much of this inflation slowing is is simply just base effects from what we saw last year uh pretty much all of it uh Turkish inflation in December 2021 was massive because of a sudden depreciation the currency of Lira which made Imports a

Lot more expensive and fed into prices so the that steepfall that we saw in inflation rate this morning from December is largely if not all uh a reflective a reflection of high base prices a high base of prices from a year earlier given that does this change anything for

For monetary policy which has been unorthodox to say the least uh probably the implications for monetary policy will be very subdued as you said uh traction interest rates are already quite low compared to the current level of inflation or the expected path of consumer price increases uh where we where we expect to

See the change the real change is going to be uh the fiscal side between now and the general elections scheduled to take place in June we expect to see a big ramp up in spending by the government to keep uh to keep consumer to keep growth strong while trying to keep consumer

Prices under control to the extent it’s possible so what what does that then mean owner for the near-term inflation Outlook in Turkey near-term inflation Outlook uh is is is is quite different depending on who you ask uh for their Outlook the government expects to see the inflation rate at

Around 22 by the end of this year that’s quite low compared to the median forecast in in survey of analysts who expect to see the inflation rate at around 44 at the end of this year now we expect the sudden steepfall in inflation rate to kind of stall and we expect the

Price increases sort of uh follow a more gradual path going forward thanks to the expected spending uh by the government that I just mentioned we expect a fiscal side to basically keep prices at elevated levels going forward

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24 COMMENTS

  1. Turkey makes everything that their consumers need. Inflation is tricky word and when you produce everything that you consume then inflation doesn't matter much.

    Inflation is a " fancy " word

  2. Turkey was a HUB for central Asia natural gas into Europe..pipeline from Azerbaijan, Turkmenistan and Russia go through turkey into south Italy …and also Ukraine grain deal cannot happening without turkey concern…Europe need turkey than turkey need Europe….with Russia getting sanctioned….turkey already becoming parallel import for Russia market…Europe company would use turkey for shipping their product toward Russia…and Europe cannot do anything…with ruble and lira transaction… Russia sending their grain and energy vice versa…Russia get Europe product…it's already settlement

  3. turkey get much deficit in trade from energy and grain…with Russia as a new reliable partner….no use for dollar….private company can get settlement borrowing in lira instead of dollar…. turkey already becoming a HUB for supplying Russia with good that's Europe in the past exported…it's win win deal…Europe get a cheap energy and Russia get good that's they get sanctioned

  4. That's why turkey cut interest rate although it's inflantion still high….turkey already get reliable trading partners….no need for dollar for its energy…it's ease turkey dependency of dollar…with cutting it's interest rate …turkey wanna shifted the dollar loan into local lira …with weaken lira toward dollar and the Fed rate high…it's much expensive to borrow dollar than lira….why you have to keep dollar if you can buy energy, fertilizer, metalurgi and food from Russia using local currency?

  5. Nice try by Erdogan. It is another lie to win the election. I don't even believe the news about discovery of huge gas deposits in Turkey …. all election propaganda

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  8. Turkey is surely hit a jackpot as of its discovering the giant gas field in black sea that contains at least 100 bn cubic meter of natual gas. The high estimate is 1 trillion M3. Now, a new gas brokers cartel is slowly and quietly formed by the global top gas producers.

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