Turkish inflation falls to lowest level since August

ANKARA: Turkish inflation has dropped below 20 per cent for the first time since August last year, reaching 19.67 per cent in February, official statistics showed.

Consumer prices had been falling since a 15-year high in October, but inflation rose in January and reached an annual rate of 20.35 per cent from 20.30 per cent in December.

The highest monthly increase was recorded in health, at 2.48 per cent, according to the Turkish statistics office (TUIK).

In January the Turkish central bank cut its 2019 inflation forecast to 14.6 per cent from a previous estimate of 15.2 per cent.

Food prices increased just 0.9 per cent in February after surging 6.4 per cent in January, the drop reflecting Ankara’s push to drive prices down.

Ahead of local elections on March 31, Turkish authorities set up their own vegetable stands, selling produce at a much cheaper rate to force markets to lower their prices.

Some of the major supermarket chains operating in Turkey, such as Migros, cut their own vegetable prices after the stalls were established last month.

Reacting to the figures, Turkish Finance Minister Berat Albayrak said on Twitter that the data “showed the effects of the measures taken. Inflation will continue to fall”.

During a rally on Saturday, Turkish President Recep Tayyip Erdogan said inflation would “fall once again to six, seven (per cent)”, adding: “20-19 (per cent) inflation doesn’t suit us.” — AFP