Nebati: Solidification of inflation not expected

Treasury and Finance Minister Nureddin Nebati has said that together with the steps taken within the scope of the fight against inflation, the government aims to improve the inflation expectations day by day and break inflation inertia.

"In this context, we do not expect a long-term and permanent solidification trend in inflation in the upcoming period," the minister said in a written interview with the Daily Hürriyet published on May 2.

Nebati noted that the disruptions in supply chains caused by the pandemic, in addition to the increase in global energy, food and other commodity prices due to the Russia-Ukraine war, increased the inflationary pressure all over the world.

"We are witnessing historical record levels on a global scale in producer-consumer inflation figures," he said.

"For instance, inflation in the United States has been at the highest level in the last 41 years. Germany and France are experiencing the highest inflation in the last 40 years. For this reason, inflation is at the forefront of the list of things to be tackled on a global scale."

Nebati reminded that in addition to the global adversities, producer prices inflation accelerated due to exchange rate developments in Turkey and reached 61.1 percent as of March.

"With all the measures we have taken since December, especially the 'Currency Protected Deposit' products, we have ensured stability in the financial markets and significantly controlled the volatility in the exchange rate," he said.

"After the volatility in the exchange rate is over, we expect monthly inflation to normalize in the short term. On the other hand, high inflation realizations in December 2021 and in the first quarter of 2022 may cause inflation to remain high for a...