Minister Elvan Commented on CPI-PPI Data

Minister Elvan commented on CPI-PPI data. Elvan, "The CPI-PPI scissors are disturbing." made statements.

In his speech at the Ankara Chamber of Industry, Turkish Treasury and Finance Minister Lütfi Elvan stated that the gap between the producer price index and the consumer price index is disturbing.

Minister Elvan made the following statements:

"We are very disturbed by the increasing gap between producer and consumer prices recently. Exchange rate pass-through and rising global commodity prices play a fundamental role in the rapid rise in producer prices." Pointing out that inflation is the main obstacle to qualified and sustainable growth, Minister Elvan said that they see the fight against inflation as a battle that must be won for the welfare of the country. Elvan continued: "Money, finance, financial sector and our structural policies act in harmony. As the Ministry, we carry out the pricing of products and services, which are managed and directed in order to prevent inflation inertia, in line with the inflation targeting policy." Stating that the indebtedness rates of the real sector are below the averages of developed and developing countries, Elvan continued his words as follows: "We are aware of the value of the manufacturing industry for the country's economy. The contribution of the manufacturing industry to the 1.8 growth performance last year was 28 percent. The manufacturing industry accounted for 30 percent of the 2021 first quarter growth. Along with the epidemic, the indebtedness ratios in the real sector throughout the world increased significantly. We see that the debt ratio of the real sector in Turkey is below the average of developed and developing countries. Thanks to the openness of our country, the real sector has the ability to manage foreign exchange open positions. While the real sector has decreased its FX short position since 2018, it has a surplus in the short term."