Türkiye targets single digit inflation

ANKARA

The government is determined to decrease the inflation to single digits, according to a statement by the Economic Coordination Board (EKK).

“The Economic Coordination Board held a meeting to discuss current economic developments and priority economic policies within the framework of the vision for the ‘Century of Türkiye,’” the board said in a statement yesterday following the meeting.

“Since our first meeting in June, important steps have been taken to ensure fiscal discipline, stabilize domestic demand, reduce the current account deficit, strengthen our reserves, and fight inflation,” it added.

“During this period, tax adjustments and austerity measures to mitigate the impact of the earthquake on the budget and strengthen resource allocation have been aimed at reinforcing financial stability and strengthening sustainability.”

Preparations for the Medium Term Program (MTP), which will enhance economic predictability, were reviewed during the meeting.

“The MTP will update our macroeconomic targets and structural reform policies and set out a roadmap for the next three years,” the board said.

The government’s main macroeconomic objective in the period ahead is to return inflation to single digits, according to the statement.

“In this context, the meeting discussed the measures to be taken in areas outside the Central Bank's competence to preserve financial stability and price stability,” the board said.

“The investigations into the prevention of stockpiling and unfair practices in the automobile and food retail sectors that disrupt the balance between supply and demand, and the related exorbitant price increases, were evaluated,” it added.

“In an environment of confidence and stability, the fight against inflation will continue to be a priority, effective and decisive steps will be taken in coordination that will further strengthen high value-added production, exports and potential growth with qualified investment, support employment growth, increase savings and ensure a lasting improvement in the current account deficit.”