Nureddin Nebati, Minister of Treasury and Finance on Tuesday said inflation remained the economy’s most grand problemreiterating the governmentthe determination to curb rising prices.
Nebati also said there was a temporary hiatus in food supply after Russia launched a invasion of Ukraine, but stressed the need steps were taken by the ministries.
“Most grand problem facing the Turkish economy right now inflation is high,” Nebati told Ihlas News Agency (IHA). “We are conscious of high inflation and are undertaking many studies to control it,” he said. added.
The authorities have pledged to give priority to taking the necessary measures steps for fight rising prices, as global Oil and grain prices soar due to Russian aggression of Ukraine. the government at also guarded possible risks for the Turks economy of the conflict.
Account Russia and Ukraine for nearly 80% of Turkey imports grain, but Ankara said it does not foresee any supply shortages due to the war and could turn to other sources.
“Stocks of our country in terms of the food is at a sufficient level,” Nebati said, dismissing reports to the contrary. “The reports that have been made consist of handling.”
The flight global prices have added additional pressure on the economy – which imports almost all of its energy needs – vulnerable to global rise in oil, gas and grain prices.
Turkey’s annual inflation jumped more than expected at a two-decade high of 54.4% in February, according to official The data.
All-out mobilization
Nebati highlighted the government ramp up support to get the rise in food prices under control, recalling the recent tax cuts.
To mitigate the impact on households, government last reduced tax month on basic goods at 1% versus 8% and subsidized a significant share amount of electricity bills.
This also announced a value-added tax reduction (VAT) on electricity used for for residential and agricultural irrigation purposes from 18% to 8%.
This also introduced a set of measures for reduce surge power invoices, including the readjustment of the level below which higher electricity tariffs for households and some businesses using more energy kick in.
Nebati pointed out that the fight against inflation should include all stakeholders of the economy.
“The support of all our stakeholders in the fight against inflation is certainly very important. We also expect support legal persons… in order at complete these steps we took,” he noted.
“We will continue our efforts in the coming period with the participation of all our stakeholders reduce inflation rate.”
He also noted that authorities are closely monitoring whether recent steps were reflected on market shelves.
“Companies are closely audited and scrutinized by the teams established within the framework of our ministry,” Nebati said. “Strong measures are being taken on a legal basis against companies that charge exorbitant prices and commit in storage.”
