Turkey revises upwards its inflation estimates
Turkey has revised upwards its inflation estimates for 2008, with Central Bank Governor Durmus Yilmaz saying recent falls in the Turkish lira amid the global economic crisis had contributed to the rise in inflation.
Speaking in Ankara, Yilmaz said inflation was expected to rise to 11.1 per cent by the end of 2008, an increase of 0.5 percent from mid- year forecasts, and a full 7.1 percentage points higher than the government's initial inflation target for 2008 of 4 per cent, reported dpa.
Yilmaz told reporters that the recent slide in the value of the lira had increased inflationary pressures.
Along with many developing nations, Turkey's currency has lost against the US dollar in the past month. On Friday afternoon the lira was worth 66 U.S. cents, compared to 79 cents one month ago.
Yilmaz also said the world economic slowdown would make it difficult for Turkey to achieve its targeted 4 per cent growth rate for 2009.