Economist and Finance Expert Prof. Dr. Duran Bülbül: Central Bank Governor Hafize Gaye Erkan's claims that inflation will fall do not reflect reality

Economist and Finance Expert Prof. Dr. Duran Bülbül spoke to Gülbin Tosun of Fox Haber, stating that Central Bank Governor Hafize Gaye Erkan's remarks regarding the decline in rent and inflation for 2024-2025 are not based on reality.

Here is the statement by Duran Bülbül as reported by Tosun:

In her interview, Gaye Erkan used the expression that we will see a slowdown in price increases regarding rents in 2025 and stated that our year-end inflation target for 2025 is 14%. I have bad news for you; Prof. Dr. Duran Bülbül explained the reasons and does not think so at all, stating that the 2024 budget figures contradict Hafize Erkan. The 2024 budget has been increased by 100%, which means that inflation will increase by 100%. An expansionary fiscal and monetary policy will be implemented in 2024, which means continuing to print money and borrow. If the budget has increased by 100%, prices will increase by 150% due to the base effect; inflation will be over 100% in 2024. Professor Duran Bülbül says that low inflation in 2025 is also a pipe dream.

In his statement to 12punto.com.tr, Economist and Finance Expert Prof. Dr. Duran Bülbül noted the following:

The reason for the decline in automobiles, home rents, and white goods is the recession and the incorrect contraction and credit policy. Prices will not fall in 2024; on the contrary, they will rise. The contraction policy implemented by the economic management has been destroyed by the 2024 budget; the 4.5 trillion 2023 budget became 5.5 trillion with the supplementary budget. The 2024 budget was increased by one hundred percent to 11 trillion, which means that inflation will increase by one hundred percent. An expansionary fiscal and monetary policy will be implemented in 2024. This means continuing to print money and borrow. If the budget has increased by one hundred percent, prices will increase by 150 percent due to the base effect. Indeed, if the contractionary monetary policy were to continue, the budget should have remained at 6 trillion. The budget deficit is 2.6 trillion, and borrowing is 2.5 trillion. The slowdown in price increases is due to recession and a decline in purchasing power. Inflation will not fall to single digits in 2025 either. In 2024, inflation will be over 100 percent. In other words, high taxes, high borrowing, high budget deficits, and continued high price increases. The result is that the public will continue to become impoverished. The 2024 budget figures contradict Hafize Erkan.

My statement to Ms. Gülbin TOSUN from Fox Haber regarding the fact that Central Bank Governor Hafize Gaye ERKAN’s remarks that rent and inflation will fall in 2024-2025 do not reflect reality. pic.twitter.com/5ZYTE2wINz

— Prof. Dr. Duran Bülbül (@DuranBulbulTR) December 21, 2023

News Source: 12punto