Page 25 - TURKRptAUG19

4.2 Inflation
4.2.1 CPI dynamics
Turkish state energy company Botas has hiked natural gas prices by an average of 14.97% for residential users, effective August 1, the Energy Market Regulatory Authority (EPDK) has announced. Natural gas prices for facilities producing compressed natural gas (CNG) have also been increased as of the same date, with an average hike of 13.73%, the EPDK added. On July 31, Turkey’s central bank cut its inflation forecast for 2019 to 13.9% from 14.6%, but left next year's outlook unchanged at 8.2%. It said the country’s annual energy inflation was expected to show an increase in July due to an adjustment in electricity prices. Across Turkey’s energy, construction and real estate sectors there is thought to be some $20bn of bad debt that companies can no longer afford. The Erdogan administration said in April that off-balance- sheet funds would be established to help restructure energy and real estate loans. No detailed strategy, however, has emerged.
More than 20 people have died from alcohol poisoning in Turkey over the past month, according to Turkish media reports cited by Reuters, as steep taxes on alcohol push Turks to consume bootlegged spirits. Prices have surged after a government tax hike of at least 8% on most alcoholic beverages in July. A litre of Turkey’s traditional aniseed-flavoured raki spirit now costs more than 200 lira ($35.29). The Chamber of Chemical Engineers (KMO) said the deaths were a direct result of the high taxes. “A litre of an
25 TURKEY Country Report August 2019 www.intellinews.com