"Rise in oil prices to affect Turkey's inflation and current deficit"

Turkey's state minister for economy said on Thursday that rise in oil prices would affect Turkey's inflation and current (accounts) deficit, Anadolu News Agency reported.

Ali Babacan said every 10 USD of rise per barrel of oil would raise Turkey's annual inflation rate by half points.

"It seems that every 10 USD of rise per barrel of oil will also have a 4 billion USD of effect on our current deficit," Babacan told a televised interview.

Babacan said capital inflow in Turkey had been more than capital outflow for the last eight years.

"We have always talked about a sustainable and stable growth for Turkey," he said.

Babacan said the government's number-one priority was to maintain stability and credibility, and the investors attached utmost importance to political stability in Turkey.

Moreover, Babacan said the ruling Justice & Development (AK) Party was thinking of preparing a new constitution after June 12th general elections.

Babacan said the government wanted the new constitution to be prepared with contributions of all segments of the society.

The minister also said the new constitution should be simple and brief so that every one could understand it when s/he read it.


/Trend/