Turkey's economy minister: inflation rate below target

Babacan has said that inflation rate which was made public on Monday was below the target.

Turkey's economy minister: inflation rate below target

Turkey's State Minister for the economy & Deputy Prime Minister Ali Babacan has said that inflation rate which was made public on Monday was below the target.

Babacan, who attended a program on HT Bloomberg, said, "in 2010, Turkey was above its target for growth rate and below for inflation rate."

Babacan said particularly the change in prices of unprocessed food increased volatility in inflation figures, noting that rise in prices of meat and vegetables had a negative impact on inflation rates.

"When the inflation rate increased 9 percent, 3 points of it was due to meat and vegetable prices. Inflation would have been 6 percent if there had not been rise in meat and vegetable prices," he said.

Referring to the criticisms that Central Bank reacted early on the reduction in the interest rate, Babacan said Central Bank considered "core inflation and harmonization of this with Medium Term Plan". He said recent developments revealed rightfulness of Central Bank.

Babacan sid there would not be a rise in price this year stemming from rise in Special Consumption Tax, "however, we should be careful against the changes in exchange rate and energy prices. Harmonization of high level growth and inflation is very important for us," he said.


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Last Mod: 03 Ocak 2011, 13:38
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