Inflation reached its peak, says finance minister

ANKARA

Inflation has peaked and will start declining, Treasury and Finance Minister Nureddin Nebati has said.

“Inflation has reached its highest level. From now on, we will see inflation decline and the effects of this downward trend,” Nebati said, speaking after parliament’s planning and budget commission approved the 2023 budget proposal.

During this unprecedented global environment, the Turkish economy has proved how strong its fundamentals are, he added, noting that in 2021 Türkiye achieved the highest growth rate in the past 50 years.

All forthcoming data are pleasing but the only problem is inflation, the minister said.

“We are continuing our fight against inflation with determination. While fighting inflation, we have taken… and will continue to do…all measures to improve the welfare level of our citizens. We prioritize investment, employment, production and exports in line with the targets set in the Türkiye Economy Model.”

Consumer prices increased 3.54 percent month-on-month in October. The annual consumer inflation accelerated from 83.54 percent in September to 85.5 percent last month. In the Medium-Term Program, the government targets 24.9 percent inflation next year. The program forecasts that the annual inflation rate will ease to 13.8 percent in 2024 and further down to 9.9 percent in 2025.

Meanwhile, with a new law, the legal foundations were laid for the Financial Stability Committee, which will include the finance, labor, industry and energy ministers as well as the Central Bank governor.

The committee is tasked with devising structural policies aimed at ensuring price stability, monitoring risks to price stability and making recommendations.