Minister of Treasury and Finance Noureddine Al-Nabati on On Wednesday, he said Turkey had made gains good Momentum, also emphasized moderation in Inflation, which was squeezing consumers.
“We’ve broken a very severe inflationary stalemate, we’ve fallen into good Pushing force. Inflation began to fall very seriously. Citizens will feel these improvements more in Nabati said in an interview with Anadolu Agency (AA).
Coronavirus pandemic and Russia invasion of Ukraine has fueled inflation throughout worlddriven by higher food, energy and commodity prices.
consumer prices in I have moderated Turkish over the last Two months after hitting 24-year high in October and inflation in December slowed down at its most intense pace in more from U.S quarter century.
Annual inflation fell to 64.27% last month of 84.39% reported in November. the decline It was mainly driven by the so-called favorable base effect and distinction a second direct drop after inflation hit Glance of 85.5% in October.
the decline is expected to become more Clear in the first quarter of This is amazing year It is expected drop to 40% by mid-2023.
“the fall of inflation in December enabled deadlock in Nabati said. In 2022, inflation will pick up in every country in the world. there complete recovery in All macroeconomic indicators in Turkish, except for inflation.”
the minister Türkiye is emphasized one of the countries hardest hit by the crisis caused from Russia invasion of Ukraine and also Note the unprecedented volatility in foreign exchange rate Before the war he said it was incompatible with Macroeconomic Facts.
The depreciation of the Turkish lira by about 44% against United State dollar in 2021, more of During the high December volatility. The lira depreciated by about 30%. in 2022 but it’s mostly stable in the last quarterwhich helped calm down pace of price Increase.
Al-Nabati said the increase in exchange rate king caused the prices in Turkish increased rapidly pace. He stressed that volatility back in It was December 2021 triggered Uncertainty Saw prices are arranged according to foreign currencies rate expectations.
This resulted in the end in serious increase in Inflation, before it deteriorated further after Russia launched its counterpart invasion of Ukraine in February 2022, according to Nabati.
He indicated that the periods of June, July and August of All year It is characterized by falling in Food prices and mobility in Tourism and increased foreign exchange inflows, but he stressed that this is not the case last year because of war.
President Recep Tayyip Erdogan last Al-Shahr said that inflation will rise. down” in the coming months and vowed to liberate Turkey from cost-of- A live “scourge”. in 2023.
for him government Three times the minimum wage in the past year, raise state salaries and raise pensions for millions to relieve economic pressure on families.
The minimum wage has been increased by 55%. for 2023 and Erdogan also announced scale would allow more from 2 million people to retire early. He said the minimum wage might go up again during the year if necessary.
the government Low interest rates were introduced to boost exports, production, investment and innovation new functions as part of economic programultimately aiming to reduce inflation by reversing the country’s chronic condition current account deficit into surplus.
else yearcenter of the country bank Lower his standard policy rate by 5 percent points to 9%, citing tags of economic slowdown.
Erdogan says A high degree cause Inflation had been called for Single-digit rates by the end of 2022. L. said government’s new economic model expected to yield results in the new year.
the government last year He introduced many relief measures to help Mitigating the repercussions of inflation, including the cap on rent increase, reduced taxes on Utility bills and statement of Great accommodation project for Low-income families.
as a ministry of Treasury and fiscal, we’ve taken all the macro measures that we needed to take. a decision We make in the economy he does not have effect in Morning, a certain time required. During this time, fall in inflation in December enabled deadlock in “Society must be destroyed,” Nabati said.
“High rate of decline in December will be reflected positively on Partial indicators and on Citizens daily life, they will have felt these improvements more in few months.”
