Expectations are among the biggest factors to blame for the increase in economic inflation in Turkey, its storage and financing minister He said Tuesday, stressing that the country will ensure hardness in Expectations are “shattered”.
driven rising Energy and food prices, annual inflation in Turkey runs at 20-year Average of Nearly 70%, according to official data. Consumer prices rose despite tax cuts on basic goods and government subsidies for Water and electricity bills to reduce the burden on family budgets.
“The most important factor of bringing current “Inflation for these numbers is expectations,” Treasury and Finance Minister Noureddine Nabati said in a regular meeting. of The general holographic of Participating Banks Association of Turkey (TKBB) in Istanbul.
“We’ll do it together ensure that hardness in Inflation expectations are shattered in Next period “.
Long-term Inflation expectations are closely watched by central banks as a guide of Whether their policies keep the inflation psychology at bay.
If expectations continue riseit indicates a loss of Confidence in monetary authorities’ ability To control inflation – and make inflation itself difficult to beat without a painful rise and fast benefit rate He increases.
“we take steps to ensure who – which price He increases caused deteriorating in Al-Nabati said that expectations and external factors are reflected at a minimum on citizens,” adding that they are “sensitive and committed” to combating inflation.
“Now we have goal “It is correcting expectations,” Nabati said. we will deal with From before joining hands, taking steps together or together.”
his statements follow closed meetings with representative of a range of Industries over The last days of dealing with fluctuations in the prices.
Nabati connection has been reported on domestic manufacturers and retailers To enforce a temporary freeze on the prices.
“We’ve been making it up clear to stand up against extravagant practices. We focus on effort, which is to put inflation under absolute control and ensure He. She moves forward in Line with Nabati said on Tuesday.
To further attempt to address the concerns, the government last Pledge the week of procurement promotion arrangements power of low-income citizens.
Rising commodity prices and Russia invasion of Ukraine, resulting in a sudden increase in And the prices of gas, oil and grains have exacerbated the situation in Turkey dependent on import.
Inflation has risen since then last Autumn, as the Turkish lira weakened after the central bank in September embarked on A facilitation cycle of 500 basis points.
The government He said that inflation will fall below it new economic programwhich prioritizes lower interest rates to boost production and exports with The goal of investigation current Account surplus.
central bank of Republic of Turkey (CBRT) Late last The month has been revised up inflation expectations for This is amazing year and the next The main reason of The rise in Commodity prices and supply issues.
It had forecast annual inflation would peak at around 70% by June before declining to nearly 43% yearEnd and odd numbers by the end of 2024.
Center bank held by key policy rate fixed at 14% in Four meetings this year Measures and . said policy steps He will give priority to the so-called lira in The market.
