Turkey urges businesses to cut prices to fight soaring inflation

Callum Keown
Follow Callum
Turkey's finance minister Berat Albayrak launched a non-compulsory private sector price discount to tame inflation (Source: Getty)

Turkey has urged businesses to cut prices by at least 10 per cent in a bid to control soaring inflation.

Finance Minister Berat Albayrak – President Recep Tayyip Erdogan's son-in-law – launched the initiative on Tuesday as part of a “fully fledged flight” against inflation.

The discount will not be compulsory but Albayrak encouraged Turks to favour those companies that chose to sign up to the initiative.

Read more: Turkish lira soars after central bank raises interest rates

He also urged people to report unusual price hikes in shops so the government could raid the inventories of stores if necessary.

Albayrak said: “The fight against inflation and for price stability is not a fight that can be conducted by the state and institutions alone.”

The Turkish lira has lost around 40 per cent of its value against the dollar this year, driving prices up across all sectors.

Inflation rose to nearly 25 per cent last month, its highest in 15 years.

Read more: Turkey's inflation rate hits 25 per cent

The country's trade ministry has also asked more than 100 firm to explain “excessive price increases”.

The government had made it illegal for companies to raise prices if they were not impacted by a rise in input costs or the exchang rate, at the height of the lira crisis in August.