Turkish Finance Minister: Inflation may reach its peak in 2022
Turkish Finance Minister Nureddin Nebati said that he expects the inflation rate to reach its peak at about 40% in the coming months, and not to exceed 50% in 2022, according to sources who attended a meeting with the minister.
According to Bloomberg news agency, Vegetarian’s most detailed forecast to date on consumer prices in 2022 came at a meeting of 60 experts and economic analysts yesterday, Saturday, in Istanbul. One of the sources quoted the minister as saying that the inflation rate may not drop below 30% until the end of the year. The Turkish Finance Ministry declined to comment.
Inflation reached 36.1% last December, the highest rate since the beginning of President Recep Tayyip Erdogan’s rule 19 years ago, and according to a survey of the Turkish Central Bank, expectations for inflation for the next 12 months jumped to 25.37% from 21.39%.
Prices rose under pressure from the Turkish Central Bank cutting the main interest rate by 500 basis points in 4 consecutive meetings, before stopping, at its meeting last Thursday, the series of cuts.
Vegetarian expected, according to the sources, that the measures taken by the authorities to support the lira would convert the assets of companies worth $10 billion into the lira.