Fighting inflation government’s priority: Finance minister

Fighting inflation government’s priority: Finance minister

Fighting inflation government’s priority: Finance minister

Fighting inflation will be the government’s top priority in the coming period, Treasury and Finance Minister Nureddin Nebati said, reiterating that effectively using monetary and macroprudential policies will be crucial to curb price increases.

The government has announced and is implementing a raft of measures, such as tax reductions, subsidies for energy consumption, financial support for the agriculture sector, and making accessing finance easier as part of the efforts to fight inflation, Nebati said in a presentation he made on June 4 at the ruling Justice and Development Party’s (AKP) 30th Consultation and Assessment gathering in Ankara.

The minister stressed that the foreign exchange-protected deposit scheme has helped in stabilizing currency rates. “The continuation of this relative stabilization [in currency rates] as well as the reverse dollarization process will play a crucial role in lowering the inflation.”

Nebati added that strengthening coordination and communication and implementation of monetary and macroprudential policies in a comprehensive and effective way will also become important in the fight against inflation in the period ahead.

Consumer prices advanced 2.98 percent in May from April, the Turkish Statistical Institute (TÜİK) reported on June 5.

Consequently, the annual consumer price inflation increased from 69.97 in April to 73.5 percent in May, the highest level in more than two decades.

The pace of increase in inflation slowed, Nebati said on June 3, commenting on the latest figures, referring to the monthly rates.

Consumer prices rose by 7.25 in April compared with March.

In his presentation at the AKP event, Nebati also said that the Turkish economy stands out with its strong and balanced growth, strong job creation and record exports at a time when global liquidity and demand conditions weaken.

“Leading indicators suggest that the favorable outlook in the Turkish economy continues in the second quarter,” he said.

The Turkish economy grew by 7.3 percent in the first quarter of 2022 from a year ago and expanded 1.2 percent on a quarterly basis.