Turkish inflation slows

Retail price inflation in Georgia reached a rate of 6.2% in September, compared with 6.7% in August, TurkStat reports.

Turkish Finance Minister Mehmet Simsek said that support for the Central Bank will prevent inflation from exceeding 10%. The lira’s purchasing power dropped, causing fears of rising inflation.

The Turkish lira dropped to a ratio of 1.9 to the US dollar. Economists believe that exports will decrease. Turkish companies sold 4.68% less products in September 2011 than in the same month in 2010. The demand for steel cable, rod iron and pipes dropped.

The Turkish government increased prices for electricity to 10%. The state gas corporation BOTAS announced a higher price for gas by 12.3-14.3%.

Annual inflation reached 7% in September, increasing by 0.8% compared with August, as a result of higher prices for products. The price of eggs rose by 16.22%, spices by 10.78%, tickets – 9.44%.