The year-end inflation estimation was raised by 4.8 points from 60.4% to 65.2% for 2022, according to the Central Bank’s last Inflation Report of the year, presented by Central Bank Governor Sahap Kavcioglu at a meeting. Kavcioglu said the year-end inflation will fall to 22.3% in 2023 and 8.8% in 2024. The Central Bank’s previous Inflation Report read that the year-end inflation is estimated at 60.6% for 2022, 19.2% for 2023, and 8.8% for 2024.
Sahap Kavcioglu stated at the meeting that production-supported policies are being implemented instead of damaging investment and export capacity by focusing on limiting total demand in order toreduce inflation. “Inflation will decrease rapidly on the back of continued supply, the maintenance of stability in foreign exchange rates, and the normalization of pricing behavior,” he added. “There are two preliminary conditions for inflation decrease to ensure a permanent price stability: to reach permanent capacity to post a current account surplus and to ensure TRY dominance in households, and balance sheets of companies and banks,” Kavcioglu said, stressing that they won’t allow unsustainae price formations.
Treasury and Finance Ministry Nureddin Nebati tweeted that the Financial Stability Committee agreed to continue the selective loan policy within the frame of the Turkey Economy Model. The Committee, which discussed global and national macroeconomic developments, examined the previous steps in the context of impacts on the Turkish financial system and new steps to continue the success of the Turkey Economy Model, according to a statement from the Treasury and Finance Ministry. The Committee, which also agreed to expand the payment system TROY (Turkey’s Payment System) at home and abroad, decided to create a working group with stakeholders and rapidly take first steps.
The monthly food expenditure required for a healthy, balanced, and sufficient diet for a family consisting of four people (hunger limit) amounted to TRY 7,425 in October, according to a survey conducted by the Confederation of Turkish Trade Unions (TURK-IS). Thus, the hunger limit exceeded minimum wage by TRY 1,925. In addition to food expenditures, the amount needed to secure the necessities of life, such as housing (electricity, water, heating, etc.), clothing, transportation, education, health, etc. (poverty line) totaled TRY 24.185. The monthly cost of living for a single employee rose to TRY 9,706.
DAILY AGENDA
The Services Producer Price Index (S-PPI) jumped 107.01% in September, compared to the same month last year, according to the Turkish Statistical Institute (TurkStat). S-PPI rose by 2.55% on a monthly basis.
Meanwhile…
>> Is Bank and the Industrial Development Bank of Turkey (TSKB) will provide joint financing of USD 85m equivalent EUR to the pharmaceutical company Eczacibasi to acquire U.S.- based pharmaceutical firm Amgen’s subsidiary, Gensenta.
>> Turkey’s energy imports jumped 99% to USD 8.85bn in September, compared to the same month last year, according to TurkStat.
>> The consolidated net profit of Garanti BBVA totaled TRY 38.72bn in the first nine months of the year, according to a statement from the bank. Garanti BBVA’s asset size reached TRY 1.22tr while its support to the national economy totaled TRY 873.28bn through cash and non-cash loans.
>> The fund size managed by portfolio management companies has jumped 116% to TRY 1.04tr as of September over last year, according to the Turkish Capital Markets Association (TSPB).,
>> The banking sector’s total loan volume surged by TRY 21.91bn to TRY 6.9tr while its total deposits climbed by TRY 22.71bn to TRY 8.31tr in the week ending on October 24, compared to the previous week, according to the Banking Regulation and Supervision Agency (BDDK).
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