ANKARA
Turkey hopes to see this year’s inflation below 6 percent, Turkish Economy Minister Nihat Zeybekci said Wednesday.
"In case the variables remain constant, we hope to see 2015 inflation below 6 percent,” Zeybekci told reporters after a meeting in Ankara.
The Turkish Consumer Price Index rose 1.19 percent from the preceding month, pushing the annual rate of inflation to 7.61 percent, according to the Turkish Statistical Institute statement.
Regarding possible upwards movement of inflation in the coming months due to the exchange rate pass-through affect, Zeybekci said that he expected food inflation to slow this year that might offset the negative affect of devaluation in the Turkish lira against the U.S. dollar.
Rising U.S. dollar pushes prices higher, known as the exchange rate pass-through affect, as imports are usually made in dollars in Turkey.
Persistently high inflation figures are a major headache to the Turkish economy and severe weather conditions last year was a source of concern for government officials who target 5 percent medium-term inflation as food inflation pushed main inflation reading to higher levels due to low agricultural output.
Stressing volatility in exchange markets starts to slow down, Zeybekci explained that over 10 percent slide in the Turkish lira against the U.S. dollar was sourced from abroad rather than the Turkish economy.
"Besides, exchange rates have already started to rebalance. We believe speculative moves will lose their effects starting from the first week of May as markets' anticipation for the outcome of elections become clear," the minister added.
