Price stability

All economic policy instruments will be used in the most effective way in the fight against inflation, Treasury and Finance Minister Nureddin Nebati has said.

"We will beat inflation permanently," said Nebati, speaking at the Uludağ Economy Summit 2022 in the northeastern province of Sakarya on Oct. 7.

Members of the Central Bank's monetary policy committee (MPC) will meet this week to decide about key interest rates.

The gathering scheduled for Sept. 20 will be the ninth MPC meeting in 2022.

French annual inflation eased in August from a three-decade high, the first slowdown in over a year, official data showed yesterday.    

Consumer prices hit 5.8 percent in August compared to 6.1 percent in July, which was the highest level since 1985, according to statistics institute INSEE.    

Turkish inflation rose to a fresh 24-year high of 79.6 percent in July, official data showed yesterday.

Month-on-month, consumer prices rose 2.37 percent in July, the Turkish Statistical Institute (TÜİK) said. Annually, consumer price inflation was forecast to be 80.5 percent.

The fight will continue until the target of establishing permanent price stability is reached, Treasury and Finance Minister Nureddin Nebati has said, adding that the FX-protected deposit scheme (KKM) has helped curb local demand for foreign currencies.

That policy also envisaged that goods and services produced in the country would become cheaper abroad because of the fall in wages. China entered its development process with a similar policy.

The US Federal Reserve has announced the most aggressive rate hike in nearly 30 years and has announced readiness for a new increase next month as a major step in the fight against rising inflation.

Consumer prices in Turkey increased by 2.98 percent in May, slowing from the 7.25 percent month-on-month increase recorded in April, according to data from the Turkish Statistical Institute (TÜİK) on June 3.

The Turkish Central Bank on Jan. 27 revised its year end inflation forecast upwards for both 2022 and 2023 while keeping its medium-term target at 5 percent.

The European Central Bank announced that the consumer price index of the Eurozone has edged to its highest level in a decade. The bank admitted that it had underestimated the potential risk of price increase in EU. The latest figures may provoke a change in the overall ECB policy aimed at containing inflation at significantly lower levels, Reuters elaborated.