Inflation remains a problem for Turkey, says Deputy PM
Simsek lauds recent falling inflation but adds that annual inflation is still too high
Istanbul
ISTANBUL
Turkish Deputy Prime Minister for the Economy Mehmet Simsek on Wednesday said that inflation continues to be a problem for Turkey.
Speaking at the 19th Eurasian Economic Summit in Istanbul, Simsek touted last month’s 0.04 percent drop in annual inflation from the previous month.
"The recent fall is positive. The annual inflation rate fell to the single digits, but it still remains high," Simsek said.
According to the Turkish Statistical Institute, last month annual inflation fell to 7.46 percent due to a sharp drop in food prices.
The health sector saw the highest monthly increase for March, with a 1.84 percent rise, while the highest annual increase was the 12.79 percent rise in the price of alcohol and tobacco products.
Besides the drop in food prices, plummeting oil prices also played a role in bringing down inflation, by hitting less than $30 a barrel earlier this year compared to $115 in June 2014.
Simsek also underlined that the government would make a great effort to improve the investment climate.
"We are working on a reform package to promote investment and we will bring the issue the parliament soon," the deputy prime minister said.
Stating that Turkey should compete for international investment and capital, Simsek added, "We have to make here more attractive."
