Turkish Central Bank: 6.5 pct inflation in 2016

According to Erdem Basci, the head of the Turkish Central Bank, the country’s inflation will stand at 6.5 percent at the end of 2016.

He confirmed that the bank would maintain its tight monetary policy while ensuring foreign exchange liquidity, and the target for inflation set by the bank for next three years would remain at 5 percent, with an uncertainty band of 2 percentage points in both directions.

Basci mentioned that the Russian sanctions against Turkish fruit and vegetable exporters may help ease Turkish inflation as the increased supply in Turkey will reduce prices.

Moscow has approved a raft of sanctions in retaliation for Ankara’s downing of one of its fighter jets that violated Turkish airspace on Nov. 24 after it ignored repeated warnings.

Russia will no longer permit the export of fresh fruit and vegetables which accounts for about $1.27 billion annually, according to the country’s Agriculture Ministry.

The Turkish Statistical Institue reported on Dec 3 this year that inflation in Turkey rose to an annual 8.1 percent in November from 7.58 percent in October.