One of the issues that Turkey has been discussing for years is the economy. In particular, the high exchange rate and inflation experienced in recent years has reduced the purchasing power of the citizens. Although it is stated that there are different reasons for this, the latest statements reveal that the authorities are now aware of some things.
Şahap Kavcıoğlu, Chairman of the Central Bank of the Republic of Turkey (CBRT), made some statements on the subject. Evaluating the agenda in his statements, Kavcıoğlu accepted the increase in food prices. He also stated that price increases in Turkey are at the top of the world. Expressing that this is directly reflected in inflation, President Kavcıoğlu stated that he believes that prices will decrease to normal with the acceleration of the normalization process.
“We are in a process where global inflation accelerates”
CBRT Chairman Şahap Kavcıoğlu; “We are living in a process where global inflation accelerates. Global production could not keep up with the increase in demand.” He underlined that high inflation is not unique to Turkey. Speaking about the causes of high inflation in Turkey, the CBRT Chairman stated that commodity prices are the biggest factor. “We think that the pricing behavior will return to normal as the normalization accelerates,” said Kavcıoğlu, and explained how the solution would be.
In the statements made by Kavcıoğlu; “In the process of opening up and economic normalization, there are significant increases in energy and service prices in the world. Global central banks think that high-rate price increases in some sectors due to energy and epidemic will be temporary with the normalization in the demand composition, the easing of supply constraints and the elimination of base effects. These factors are in the coming period. It will also have a disinflationary effect in our country.”
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