Inflation in Turkey has slowed down at the fastest pace in more than a quarter century, and this slowdown may be due to an increase in government spending planned on the eve of the elections, writes Bloomberg.
Consumer prices increased by 64.3% in annual terms in December, compared with 84.4% in the previous month, according to data published by the Turkstat State Statistical Agency on Tuesday.
Most of the slowdown reflects the basic effect of the rapid price of prices in the last month of 2021, when Lira lost almost a fifth of its value for several days, which made imports more expensive. The restrained increase in lending and the relatively stable currency have since led to the fact that politicians expect inflation at the level of 22.3% of this year.
The increase in the cost of food, energy and selling prices at enterprises has slowed down to a level below 100%. According to the Minister of Finance Nuddin Nebati, this indicates a “noticeable tendency to reduce”, which allowed the government to achieve targeted indicators in its medium -term program.