Turkey’s private sector to reduce prices 10 percent to fight inflation: minister

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AFP PHOTO

Turkey’s government has agreed with the private sector for an across-the-board 10 percent discount in goods, Finance and Treasury Minister Berat Albayrak said on Tuesday, in a move aimed at taming inflation that surged to nearly 25 percent last month, Reuters reported.

Albayrak said the discount would be reflected in all the goods that make up Turkey’s inflation basket, adding that there would be no more price increases in electricity and natural gas until yearend.

Unveiling a new set of measures to fight inflation, Turkey’s treasury and finance minister vowed an “all-out war” on inflation on Tuesday, according to the state-owned Anadolu news agency.

“This program for an all-out war on inflation will further boost investor confidence,” said Albayrak.

Under the program, Albayrak said there would be no increases in electricity or natural gas prices through the end of the year and that the government would support businesses to prevent layoffs.

“Our banks will give a 10 percent discount to high-interest loans extended after Aug. 1,” he added.

Companies that try to boost profits under the current circumstances would cause greater losses in the near term, he warned.

According to the country’s statistics authority, Turkey’s annual inflation reached 24.52 percent in September, up from 17.90 in August.

As noted in Turkey’s new economy program announced last month, the country’s inflation rate target is 20.8 percent this year, 15.9 percent next year, 9.8 percent in 2020 and 6.0 percent in 2021.

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