Inflation should gradually drop to single digits: Minister

ISTANBUL

The government aims to bring inflation down gradually to single digits, Treasury and Finance Minister Nureddin Nebati has said.

“Our approach is different than that of the governments in the Western countries, which seeks a sharp decline in inflation despite all negative consequences, such as higher unemployment,” Nebati told private broadcaster CNN Türk.

“What we say is inflation should come down gradually to single digits.”

Elevated energy costs and the depreciation of the Turkish Lira were the main reasons behind inflation, Nebati said.

The government’s inflation target for this year is 23.9 percent, Nebati added, noting that inflation dropped 42 points over the past six months.

“The decline in inflation will continue. We will see producer price inflation fall below consumer price inflation in the next couple of months.”

Interest rates will not be increased, and the government will not change policy course, Nebati said. “Nobody wants rate hikes. We will not raise interest rates. We are on the right path.”

The minister also said the budget performance has been strong. “This is because we have not compromised on budget discipline. The budget made a good start to 2023. Despite the [deadly Feb. 6] earthquakes, there are no problems regarding finding financial resources.”