Turkey’s Treasury Minister makes statement on CNN Turk: Inflation will fall from December
Treasury and Finance Minister Nureddin Nebati made important statements on CNN Turk about Turkey’s roadmap on issues such as economy, inflation, minimum wage and the increase in civil servants’ salaries.
Nebati said, “We are not pressing the brakes hard, the rate of increase should decrease. We will see a decrease in inflation in December due to the base effect” he said. Regarding the increase in the minimum wage and civil servant salaries, Minister Nebati said, “The increase will not be below inflation.”
Here are excerpts from statements of Minister Nebati:
Inflation is not Turkey’s problem alone, it is the problem of the world. Europe is heading towards recession. Inflation is constantly being discussed in the US. The reason for inflation is the rise in global commodity prices. The best example of what embodies this is the virus in Wuhan. A person sneezed in Wuhan, the world was ruined. People’s predictions disappeared the next day. This was a severe scourge. 21. the century did not start well. The effects of major crises last for many years. The outbreak caused commodity prices to collapse. With this, there was pressure on the world. We had predictions of normalization as of May in the summer. It has disrupted the foresight of everyone in the world. The war started. It was predicted to last for 3 days, has surrounded the world. The process of experiencing the largest inflation in the last 70 years has taken place.
“INFLATION WILL FALL IN DECEMBER”
Why did Turkey come to 80 percent, while western countries have experienced double digits? We have oil and gas imports. The pressure brought by these and the sudden rises in exchange rates that are not supported by the macro economic indicator. Those who knew this opportunity caused exchange rates to rise. Behavior has broken down in pricing.
In addition, the 3rd reason of inflation in Turkey is expectations. Expectations have been shattered. After the epidemic on one side and the war on the other, businesses went into stocks. Prices were pulled forward because prices would rise. Demand inflation was created with cheap credit. These brought it to 83 percent. We have our point of view. I said in meetings in Washington in March, ‘You are facing a dilemma’. Inflation or growth? They also questioned our policies. I have seen this reaction decrease in the G20 meetings. The cooling down in commodity prices is reducing the pressure on inflation after the cooling down in oil prices and in food prices. We are not pressing the brakes hard, the rate of acceleration needs to decrease. What will make the expectations break is that we will see inflation decrease in December with a base effect.
