Turkey unveils plan to tame inflation

Turkey's Finance Minister Berat Albayrak on Tuesday announced "an all-out war" against inflation – which reached more than 24 percent last month, the highest in 15 years, following a 40 percent slide of the lira against the dollar this year. 

Albayrak said his plan will see inflation recede in October, promising businesses a discount on high-interest loans. 

TRT World 's senior business producer Mobin Nasir has more.

'All-out war'

"This programme for an all-out war with inflation will further boost investor confidence," said Albayrak.

Under the programme, Albayrak said there will be no increases in electricity and natural gas prices through the end of the year, and the government will support businesses to prevent layoffs.

"Our banks will give a 10 percent discount to high-interest loans given after August 1," he added.

"Firms taking part in the anti-inflation programme will apply a minimum price discount of 10 percent through the end of this year," he said.

Companies that try to increase profits under the current circumstances would cause greater losses in the near term, he warned.

High inflation

According to the country's statistical authority, Turkey's annual inflation reached 24.52 percent in September, up from 17.9 in August.

Over the past five years, annual inflation saw its lowest level at 6.13 percent in April 2013, while the figure reached its highest level this September.

As noted in Turkey's new economy programme announced last month, the country's inflation rate target is 20.8 percent this year, 15.9 percent next year, 9.8 percent in 2020, and 6.0 percent in 2021.