Treasury and Finance Minister Mehmet Şimşek evaluated the inflation figures to TGRT Haber.
Minister Şimşek “This year inflation, the central bank’s target estimation of 19-29 percent of the possibility of remain quite high,” he said.
Simsek, Imamoglu investigation on the market on the effect, “only 3 days lasted the next Monday,” he said.
Şimşek continued as follows:
The most important agenda of the struggle with the cost of living is. Our aim is to pull inflation down in a planned way. In starting this program, we envisaged a one -year plan. This included the reconstruction of the monetary policy. Annual inflation is downward. Despite the recent internal and external shocks, this decline continues to continue. In the future, we expect inflation to continue to decrease.
The first reason for this is that the delayed effect of monetary policy is now clearly seen. This year, both the fiscal policy and the revenue policy will be in a more realistic framework. Our supply -oriented developments continue. We support the process not only with money and finance policies, but also with supply -oriented disinflationist efforts.
Last year inflation fell to 44 percent. This year’s goal is twenty figures. Our estimate range is between 19 and 29 percent. We believe that we will achieve this goal. Currently, annual inflation is around 37.9 percent. Inflation has seriously fell in basic goods. Food inflation is around 36 percent. When we look at the goods inflation, we have decreased to 31 percent.
The main element that keeps inflation high is service inflation
In particular, rent and training items pull this area up. This year, service inflation is below 90 percent. We expect a normalization after July. At the end of the year, we anticipate that annual inflation will decrease below 30 percent.
Monetary policy is strict, income policy is supply support. At the end of this year, we expect a significant increase in housing supply compared to 2023. Earthquake houses, on -site transformation and urban transformation we have commissioned important resources.
We also remain loyal to the original targets of the Central Bank in managed prices. We set a price below the target in many areas. We anticipate that inflation will decrease in these items. Despite the latest shocks inside and outside, we prioritized the inflation program. Because our most important issue is the struggle for the cost of living. We’re determined about it. The first year was a transition process, this year we started to get results. We expect stronger results next year.
Constructive criticism is very valuable to us. However, there is a serious polarization in society and evaluations are sometimes made from a political perspective. There is not much to say in this framework. The goal of the program was to reduce inflation and this began to take place. There is no miracle in real life. A program that produces continuous and continuous results needs to be implemented. Is the result coming? Yes, inflation is a decrease tendency.
Our second goal was to attract the current account deficit to a sustainable path, we succeeded. There were also positive developments in access to external source.
We had a goal of exit from exchange rate protected deposits, and there is a decrease in this stock. There is progress in all these areas and results are obtained. Of course, we are moving at the desired speed, this is discussed. We consider constructive criticism and consider it as a guide. But we have nothing to say to the pumping circles.
We believe that inflation will remain in the estimation range of the Central Bank. These evaluations are made considering the latest developments. Of course, there are also factors that attract inflation, but the overall tendency is downward.
We will have visits in London and Doha in the coming days. Here we will make dialogues with investors.
