Economist says Turkey needs extensive reform in food to stay on inflation targets

Cemil Ertem, the President’s chief economist has stated that the main reasons for inflation will be on the agenda in the coming period, for the government to take them into consideration. The Chief Advisor also shared that the statements made by Central Bank President Murat Çetinkaya in Davos were very important for the bank’s verbal communication.

Speaking on one of the state channels Ertem said, “The President of the Central Bank that regardless how tight monetary policies are made, it would not be efficient enough unless main reasons are spotted and dealt with, adding the Central bank would focus on more  radical solutions.

Regarding the structural problems of inflation Mr. Ertem said, “Access of firms to finance, importation of unnecessary intermediate goods, pressure of exchange rate, problems in the field of production, and certainly food inflation…  Comprehensive reform in food is a requirement… When price increases in food are not prevented, targets will deviate, regardless how tight policies are practiced by the Central Bank”.

Ertem also said, “More integrated decisions will be taken in consideration of the general level of wealth. This is a new perspective and sound outcome and it needs to be supported. Our support for the Central Bank is complete. The government knows the problems pointed out by the Central Bank and I think they will deal with them”.