Inflation hike temporary, Babacan says

ANKARA - Anatolia News Agency

The reasons behind the recent increase in Turkey’s inflation rate are apparent and temporary, Deputy Prime Minister Ali Babacan said yesterday.

“As a result, the numbers will normalize in a while,” Babacan told the Anatolia news agency. He explained that sometimes there could be momentary spikes in inflation, but that these were not enough to change inflation expectations, adding that there was no risk that the high inflation rate would either be permanent or out of control.

“By the end of the year we expect to achieve a 6.5 percent inflation rate,” Babacan said, adding that he also expects the inflation rate to drop to 5 percent in 2013.

In answer to a question regarding Turkey’s new incentive scheme, Babacan said: “We have disclosed our program. How many investors will walk through those doors, the amount of investment that we will see, that is the prerogative of the investors and the private sector.”