Turkey reinforces disinflation efforts through targeted policies, reforms
Date
1/16/2025 7:12:06 AM
(MENAFN) Turkey will maintain its commitment to disinflation by implementing demand- and supply-driven measures in key sectors such as food, housing, and energy, while accelerating structural reforms, Turkish Treasury and Finance Minister Mehmet Şimşek announced on Wednesday.
Speaking at the bank of America Securities Turkey Conference in London—the first event of its kind since 2018—Şimşek highlighted the government's comprehensive approach to tackling inflation. The conference saw a record attendance of 250 investors and will continue through Thursday and Friday.
Şimşek emphasized that inflation is expected to decline due to the delayed effects of monetary policy adjustments, fiscal discipline, a supportive wage strategy, and controlled price-setting measures aligned with inflation targets.
He projected that Turkey’s budget deficit would shrink to approximately 3 percent of GDP this year, driven by a reduction in public spending.
The minister detailed updates to the lump-sum tax on fuel, tobacco, and alcoholic beverages, which are now linked to the domestic producer price index (D-PPI) for the past six months. He noted that the special consumption tax (SCT) on fuel has been capped at a 6 percent increase, below the six-month D-PPI, to mitigate its impact.
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