Turkey’s inflation to peak at 40 percent, finance minister tells economists

Turkey expects its consumer price inflation rate to peak at about 40 percent in the coming months, Treasury and Finance Minister Nureddin Nebati told economists at the weekend.

Inflation will not exceed 50 percent this year, Nebati said at a meeting in Istanbul on Saturday, according to Bloomberg, which cited unidentified people attending the meeting.

Turkey’s consumer price inflation accelerated to 36.1 percent in December, the highest level since 2002, after the lira slumped to record lows against the dollar and the central bank cut interest rates.

Economists should not expect the benchmark interest rate of 14 percent to increase, Nebati said. Turkey will not raise interest rates, and this is the government’s responsibility, he said.

Plans by the U.S. Federal Reserve to tighten monetary policy will not affect Turkey, he said.

The Turkish Statistical Institute will report January inflation figures on Feb. 3.

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