Meat prices 'boost inflation', Turkey's Deputy PM says

Turkish State Minister & Deputy Premier Ali Babacan commented on the latest developments in Turkish economy on Monday.

Meat prices 'boost inflation', Turkey's Deputy PM says

Turkish State Minister & Deputy Premier Ali Babacan commented on the latest developments in Turkish economy on Monday.

Attending a TV program broadcast by Haberturk TV channel, Babacan said customer confidence indices had reached the pre-crisis level and there had been a rapid recovery in the
local market.

Upon a question on whether inflation figures were in accordance with his expectations, Babacan said economy officials had previously announced that inflation rates would remain high until the last quarter of 2010.

Noting such situation stemmed from the recovery in Turkish economy, Babacan said economy was reviving quite fast.

Commenting on whether meat prices had any impact on inflation rates, the Turkish minister said meat prices had a direct and strong effect on inflation.

"Our overall inflation rate is 10.2 percent and 1.7 points of such figure derive from meat prices. If meat prices had increased parallel to overall inflation, inflation figures would have been around 8.5 instead of 10.2," Babacan said.

Babacan said that Turkish meat market was going through a major transformation process and large enterprises were growing in number.

"We should protect our livestock sector. The sector should achieve a sustainable profitability rate," the minister said.

Babacan also said that he believed the inflation figures made public today would not have any serious effect on interest rates.

Replying to a question on whether Turkey would extend support to Greece, which is currently struggling with a serious economic crisis, Babacan said, "we do not have such an issue on our agenda at the moment".

Pointing to his recent visit to Greece, Babacan said Turkish officials gave their Greek counterparts advice on financial discipline during their talks.


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Last Mod: 03 Mayıs 2010, 17:11
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