Minister Şimşek's Assessment on Inflation and the Impact of War
Treasury and Finance Minister Mehmet Şimşek stated that ongoing wars and rising energy prices directly affect inflation.
Treasury and Finance Minister Mehmet Şimşek evaluated the economic agenda during a live broadcast, drawing attention to the negative impacts of geopolitical developments and energy costs on inflation.
Economic Statements on Live Broadcast
Treasury and Finance Minister Mehmet Şimşek made important evaluations regarding the economic agenda on NTV live broadcast and shared the details of the ongoing program.
Impact of Wars on Inflation
Minister Şimşek stated that the war that began after the assassination attack carried out by the US and Israel against Iran's religious leader Ali Khamenei caused deviations in inflation targets.
Stating that the environment of war has negatively reflected on diesel and petroleum product prices, Şimşek emphasized that this situation directly affects overall price stability.
Emphasis on the Seven-Point Difference
Touching upon the Central Bank's study, Şimşek said that if wars and energy increases had not occurred, inflation would have been at least 7 points lower, meaning around 24.5 percent.
Year-End Inflation Expectations
Şimşek noted that under current conditions, it is projected to close the year around 28-29 percent, but if there had been no war, this rate could have been at the 21-22 percent level.
He also pointed out that if the implemented economic program had not been put into practice, inflation rates could have surged to much higher levels.
Current Account Deficit and Energy Prices
Providing information on sustainable current account deficit targets, Şimşek stated that due to developments in energy prices, the current account deficit this year is expected to be realized at the level of 2.6 percent to 2.7 percent.