Gov’t determined in its fight against inflation: Minister

BURSA

The government is determined to lower inflation permanently and is taking steps in that direction, Treasury and Finance Minister Nureddin Nebati has said.

He noted that the annual inflation rate came in at 61 percent in March, but inflation will ease to more reasonable levels toward the end of the year.

Savings in FX-protected deposit accounts have amounted to 695 billion Turkish Liras ($47.2 billion) as of April 1, Nebati said at a meeting with businesspeople in the northwestern province of Bursa.

“Protected accounts mechanism and other financial instruments offered along with this scheme have helped exchange rates stabilize and ease inflationary pressure from exchange rates,” the minister added.

The government will continue to protect the country’s citizens against the higher cost of living and keep a close eye on companies that engage in excessive price increases.

“We have overcome the interest rate and exchange rate [issues], next is inflation,” Nebati said.

The Turkish Statistical Institute (TÜİK) reported yesterday that the annual consumer price inflation advanced from 54.4 percent in February to 61.1 percent in March.

In March 2020, the annual inflation rate was 11.9 percent.

Consumer prices increased by 5.46 percent in March on a monthly basis, which was slightly higher than the market consensus forecast for a 5.34 percent rise.

In the month, food and non-alcoholic beverage prices exhibited a monthly rise of 4.73 percent, for an annual increase of 70.3 percent. Clothing prices advanced 1.78 percent in March from January, while housing prices rose by 1.84 percent.

Communication and transport costs increased by 3.6 percent and 13.3 percent on a monthly basis, TÜİK data showed. The increases in education and health services prices were 6.6 percent and 5.3 percent, respectively.