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Qatar Tribune
05-07-2025
- Business
- Qatar Tribune
Turkey's inflation falls to 35.1% in June, extends downward trend
Agencies Annual inflation inTurkeyeased further in June to nearly 35.1%, official data showed on Thursday, continuing a downward trend amid a period of disinflation lasting since the middle of last year. The consumer price index (CPI) came in at 35.05% in June, slowing down from 35.41% in May, the data from the Turkish Statistical Institute (TurkStat) revealed. The monthly inflation rose 1.37%, down from 1.53% in May, TurkStat said. This marked the 13th consecutive month of easing consumer inflation and the lowest level since late 2021, bolstering the expectations for the rate cut by the central bank later this month. The central bank kept rates steady at 46% last month, after reversing the easing cycle that it pivoted at the end of last year. Both rates came in slightly below market estimates, which saw annual inflation at around 35.2% and monthly at 1.45%. The highest price rises in June on a yearly basis were seen in education with 73.33%, housing 65.54% and health care 38.7%, according to TurkStat data. On the other hand, the lowest price hikes were in clothing and footwear with 14.47%, communications with 18.43%, and recreation and culture with 27.53%. TurkStat said there were three main expenditure groups with the highest weight: food and non-alcoholic beverages with annual inflation of 30.2%, along with transportation with 27.72% and housing with 65.54%. 'The contributions of these main groups to the annual change were 7.60% for food and nonalcoholic beverages, 4.51% for transportation and 9.22% for housing,' it added. The monthly increase in prices, similarly was also led by education with 4.48%, the data revealed. It was followed by the housing at 2.62% and transport at 2.38%. Commenting on the data, Treasury and Finance Minister Mehmet Şimşek said that monthly inflation in June was 1.37% despite rising oil prices due to geopolitical tensions. Oil prices fluctuated amid the escalation of conflict and attacks between Israel and Iran, rising considerably compared to previous months before settling again as tensions eased. 'In services, where inertia is high, annual inflation dropped to 50% after three years,' Şimşek said on X. 'Our determination in the disinflation process has become evident in both actual data and expectations,' he added. In recent times, declining commodity prices and reduced volatility in financial markets improved inflation expectations, the minister further said, adding that 'supportive demand conditions will contribute to the continued decline in inflation in the second half of the year.' 'Our citizens can rest assured; a noticeable slowdown in inflation has begun across various sectors, from food and durable consumer goods to education and transportation, and this trend will continue,' he added. His view was echoed by Vice President Cevdet Yılmaz, who in a post on X reiterated the government's expectation to see inflation in the 20s range by the end of the year. 'The main trend of inflation continues to decline, and with the improvement in expectations, the decrease in inflation has been ongoing uninterrupted for 13 months since June 2024,' Yılmaz wrote on X.
Qatar Tribune
17-06-2025
- Business
- Qatar Tribune
Markets price in July rate cut as Turkey inflation outlook improves
Agencies Inflation in Turkey is projected to drop below 30% by the end of the year, while the country's central bank is expected to return to rate cuts as of next month, a latest survey showed on Monday. Markets are forecasting inflation cooling to 29.86% by the end of 2025, according to the Survey of Market Participants for June by the Central Bank of the Republic of Turkey (CBRT). That is down from 30.35% in the previous month's survey. Aggressive monetary tightening since mid-2023, combined with favorable energy prices, has helped reduce Turkey's annual inflation rate by half over the past year. The inflation lastly dipped to 35.4% in May, compared to around 75% a year ago. The central bank has repeatedly cited expectations as one factor determining the course of its monetary policy. The bank last month maintained its year-end mid-point estimate for the consumer price index (CPI) at 24%, with an upper band of 29%. Turkish officials continue to emphasize that inflation will remain within this forecast band. Treasury and Finance Minister Mehmet Şimşek on Thursday cited stickiness in services inflation, which he said was preventing further improvement in headline CPI. Still, Şimşek said inflation could end the year in the 20s, stressing a steep fall in basic goods prices. The CBRT pivoted to raising its key policy rate by 350 basis points this April to 46% and pushed the overnight lending rate to 49% after Turkish assets and the lira fell sharply after Istanbul Mayor Ekrem Imamoğlu was jailed pending trial over graft charges. Before that, the bank had begun an easing cycle and gradually cut its one-week repo rate to 42.5% in March as inflation fell from the level of more than 75% that it reached in May 2024. The sharper-than-anticipated slowdown in inflation last month has reignited speculation that the bank could resume rate cuts soon. Markets see inflation 12 months from now falling to 24.56%, the CBRT survey showed. That is down from 25.06% in the previous survey. The 24-month-ahead forecast eased to 17.35%, down from 17.77%, the bank said. Market participants expect the central bank to keep its benchmark one-week repo rate unchanged this Thursday but project a three percentage point cut in July. They see the rate falling to around 40% in September before ending the year at around 36%. A year from now, the key policy rate is estimated to be around 29%. Survey participants now expect the lira/dollar exchange rate to be 43.57 by the end of 2024, slightly below the previous forecast of 43.70. However, the 12-month ahead forecast for the exchange rate increased to 47.04, up from 46.62 in the last survey period. The Survey of Market Participants is conducted monthly. The panel consists of 72 participants, 54 of whom are experts in the financial sector and 18 of whom are experts in the real sector.
Qatar Tribune
23-05-2025
- Business
- Qatar Tribune
Minister meets with Turkish delegation
Minister of State for Foreign Trade Affairs at the Ministry of Commerce and Industry HE Dr Ahmed bin Mohammed Al Sayed met Mehmet Simsek, Minister of Treasury and Finance of the Türkiye, on the sidelines of Qatar Economic Forum 2025. During the meeting, the two sides discussed topics of common interest aimed at strengthening bilateral cooperation in the fields of trade and investment, as well as ways to support and develop mutual relations. They also exchanged views on key issues featured on the forum's agenda.
Qatar Tribune
20-05-2025
- Business
- Qatar Tribune
Turkish finance minister invites Qataris to invest in his country
Tribune News Network Doha Qatar Chamber hosted a high-level Turkish trade delegation headed byMehmet Şimşek, Minister of Treasury and Finance of the Republic of Turkey. The delegation was received by Eng. Ali bin Abdullatif Al Misned, Qatar Chamber Board Member. Also attended the meeting were several QC board members, H.E. Dr. Mustafa Göksu, Ambassador of the Republic of Turkey to the State of Qatar, Furkan Karayaka, Vice President of the Investment Office of the Presidency of the Republic of Turkey, along with a number of Qatari businessmen. The meeting discussed ways to boost cooperation between Qatar and Turkey in commercial and economic fields. Discussions also covered the investment climate and available opportunities in both countries, with an emphasis on establishing trade alliances between Qatari and Turkish companies. In his remarks, Eng. Ali Al Misned praised the strong and brotherly relations between Qatar and Turkey across various fields, particularly trade and economic cooperation. He stressed Qatar Chamber's readiness to support efforts aimed at further enhancing collaboration between the business sectors of both countries. He noted that the volume of trade exchange between the two countries amounted to QR 4.18 billion in 2024. Al Misned also pointed out that more than 140 Turkish companies are currently operating in the Qatari market, including 16 wholly owned by Turkish investors, across various sectors. For his part, Mehmet Şimşek, Minister of Treasury and Finance of the Republic of Turkey, affirmed the strength of relations between Turkey and Qatar, noting the deep-rooted and strategic partnership between the two nations. He highlighted key features of the Turkish economy and its conducive environment for business and investment. He underscored the importance of enhancing cooperation through the establishment of joint ventures, whether in Qatar, Turkey, or third markets such as Africa, East Asia, and other emerging economies. He further emphasized that Turkey offers numerous investment opportunities and warmly welcomes Qatari investments across all sectors such as technology. Renewable energy, industry, agriculture, tourism and infrastructure.
Qatar Tribune
20-05-2025
- Business
- Qatar Tribune
Finance minister meets several ministers, officials on margins of QEF 2025
DOHA: Minister of Finance HE Ali bin Ahmed Al Kuwari has met with Minister of Economy and Planning of the Kingdom of Saudi Arabia HE Faisal bin Fadhil Alibrahim, on the margins of the Qatar Economic Forum 2025, held under the theme 'The Road to 2030: Transforming the Global Economy'. Both ministers conferred on a broad range of topics related to shared interests, particularly economic ones, as well as avenues for broadening collaborative efforts between the two nations. Separately, Al Kuwari met with Minister of Treasury and Finance of the Republic of Turkiye HE Mehmet Simsek, on the margins of the forum. They addressed a range of topics related to the shared interests of both countries, particularly in the financial and economic fields, as well as measures aimed at broadening the scope of these joint activities. Additionally, Al Kuwari met with His Grace The Duke of Richmond, Charles Gordon-Lennox, from King's Trust International. The meeting reviewed areas of mutual cooperation and discussed ways to strengthen relations across a number of sectors of shared interest, particularly in the fields of economy and investment, in addition to addressing regional and international economic developments. Al Kuwari also met with Executive Vice President and Chief Commercial Officer at Microsoft, Judson Althoff. Both sides deliberated on strengthening the frontiers of bilateral cooperation in the areas of investment, finance, and economics, as well as a host of topics of shared interest.
