Inflation that is approaching 10 per cent poses a serious threat to the economy because it lowers the growth potential, Turkish Deputy Prime Minister Mehmet Simsek said, citing weakness in the lira and food prices for sparking inflation.

In a speech to a Turkish business forum, Simsek, the government's economy czar, also said that non-performing loans may be somewhat high this year.

Economists see inflation as Turkey's most pressing economic problem. Consumer prices rose 9.58 percent year-on-year in January. – Reuters