July 1, 2022

The Minister of Finance is committed to increasing purchasing power

ANKARA

Treasury and Finance Minister Nureddin Nebati pledged to boost people’s purchasing power, reiterating the government’s determination to curb runaway inflation.

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Speaking at the General Assembly of Turkey’s Participatory Banking Association in Istanbul, Nebati said energy, commodity prices and transportation costs are pushing inflation to record highs across the country. world. “Inflation will remain one of the main issues dominating Turkey’s and the world’s agenda in 2022,” he said.

“Faced with these global developments, we are using our resources in the most efficient way, subsidizing costs and supporting our manufacturers. We also provide financial assistance for the consumption of natural gas to households,” he said.

The minister added that inflation is not an issue that only the state can solve, as it requires coordinated efforts involving all stakeholders.
“We will increase the level of people’s purchasing power more than before. Our priority is to bring inflation under control once and for all and make progress towards our objectives. We are aware of the importance of financial stability to achieve the macroeconomic objectives we have set ourselves,” Nebati said.

The minister added that exchange rate volatility is one of the major factors affecting inflation.

“Thanks to the exchange-protected lira deposit system and other measures taken, we have managed to prevent this volatility to a large extent.”

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One of the main reasons for rising inflation is deteriorating expectations, Nebati said.

“Our focus now is to help improve expectations about the inflation outlook.”
Consumer prices rose 7.35% in April from the previous month, bringing the annual inflation rate to 69.97% from 61.1% in March.

Last month, the Central Bank raised its inflation forecast for 2022 from 23.2% to 42.8%. It also revised up its forecast for 2023 from 8.3% to 12.9%.

Economy,