Fighting inflation top priority, reiterates VP Yılmaz

ISTANBUL

The fight against inflation remains the government’s priority, Vice President Cevdet Yılmaz has reiterated, voicing optimism that inflation will gradually come down as predicted in the medium-term program.

“We have the necessary policy set in place to curb inflation, including monetary and fiscal policies. The Central Bank is doing its part and taking necessary steps,” Yılmaz said in an interview with private broadcaster Habertürk.

Structural reforms are the other pillar in the fight against inflation, but it will take time to see the results of the reforms, he added.

The inflation will lose momentum in the coming months, and the annual inflation will slow after May, sometime around June or July due to base effect, according to the Vice President.

A steep decline in inflation will be seen in 2025 and it will come down to single digits in 2026 as predicted in the medium-term program, Yılmaz said.

The annual inflation rate picked up from 64.9 percent in January to 67.07 percent in February. The monthly inflation, however, slowed from 6.7 percent to 4.53 percent, showed the latest official data.

“The increase in inflation will affect the exchange rate to some extent, which is normal. If this reaches extreme levels, our Central Bank will give the necessary response to speculative movements,” Yılmaz also said.

The central and local governments will follow policies aimed at producing more social housing, according to the Vice President.

“Demand for homes supported with loans lead to inflation but supply should be increased instead,” he said.

The government will decide on the cap on rent increases depending on the course of inflation and rent prices. An impact analysis will be made, and the government will make a decision accordingly,” Yılmaz said.