Turkey’s Vice President Yılmaz announced on Saturday that the country will continue its strict fiscal policy and financial discipline to further reduce inflation. According to recent official data, Turkey’s Consumer Price Index (CPI) rose by 4.84 percent on a monthly basis in January, exceeding expectations due to new year price changes and increases in food and non-alcoholic beverage prices. The annual inflation rate has decreased to 30.65 percent. Yılmaz stated that despite a 45-percentage-point reduction in inflation since May 2024, this decline remains insufficient, and the government is working to lower consumer prices further. Inflation has been a serious issue in Turkey for years, negatively affecting the public’s purchasing power. Despite the growing popularity of cryptocurrencies and other non-traditional financial instruments, the country has focused on conventional financial policies. These strict measures include raising central bank interest rates and controlling government spending as part of efforts to reduce inflation. Experts note that while the government has taken solid steps to control inflation, global economic pressures and fluctuations in energy prices continue to pose challenges to the economy. Therefore, future fiscal policies will require flexibility and a comprehensive strategy to further reduce inflation and ensure economic stability. The role of fiscal policies is crucial for economic stability in Turkey, and the government’s decision to maintain strict financial discipline reflects its commitment to controlling inflation and improving citizens’ lives.
Source: binance
