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Oct 17 2018

Turkish price cuts on 407 goods cover inflation basket

Turkey is cutting the price of 407 goods that cover the country’s inflation basket, Hürriyet newspaper reported.

The Union of Chambers and Commodity Exchanges of Turkey (TOBB), the country’s biggest business group, has sent the list of goods to members throughout Turkey’s 81 provinces requesting that they make the price cuts of 10 percent requested by Treasury and Finance Minister Berat Albayrak. The measure is set to remain in place for the rest of the year.

Albayrak said earlier this week that inflation, which surged to almost 25 percent in September, would begin to slow in October and continue its downward path until the year-end. Should companies adhere to the TOBB’s request, then it follows that his prediction will come true.

The TOBB’s list includes a vast array of goods including household items, agricultural products, clothing, electronics, food, cleaning materials and drink, Hürriyet said.  

Governments including Turkey draw up a basket of goods to calculate the inflation rate. The gauge is supposed to provide a reliable indicator of price rises for the economy in general. The central bank and other institutions use inflation data to decide on policy, including changes to interest rates and public sector pay levels.