Inflation in Turkey will begin for decline in the summer, Treasury and Finance Minister Nureddin Nebati said on Wednesday, predicting that global tensions will ease.
Inflation soared to 54% in February, mainly due to a surge in global commodity prices driven by the Russian-Ukrainian war and last yearis decline in the Turkish lira.
Russia invasion of The Ukraine that started at the end of February adds to inflationary pressure in Turkey and could expand current account deficit.
Economists see inflation rising further away in months to come, but Nebati hit a more optimistic note on Wednesday when he addressed investors in Cannes, France.
“The tensions in the world will not continue. As of summer months, especially since of the end of the yearwe will see the fall (in inflation) and rapid normalization overall,” he said.
Nebati said Turkey was determined to reduce inflation to single digits by the scheduled elections for Taken June 2023 place.
Read it declined 44% against United States dollar last year and followed an easing cycle that saw the central bank cut her policy rate per 500 base points at 14%.
The cuts came as government approved a new economic program which gives priority to exports, credit, growth and employment.
Ankara was able to stem the rise in the lira decline in December through the government-backed scheme that protects lira deposits against forex depreciation.
nebati said on Wednesday that diet helps keep the exchange going rate at a “stable and predictable” level.
Noting that Turkey has closed 2021 with balanced and strong growthNebati added that despite the problems in logistics and tensions in the Black Sea, Turkey trade continues at a great pace beyond all expectation.
“The wheels are turning,” he said.
the government watched possible risks for the Turks economy of its Black Sea neighbours, Russia and Ukraine.
