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CHP Tekirdağ Deputy Faik Öztrak’s commentary on the inflation report: 'This rice will need a lot more water'

Republican People's Party (CHP) Tekirdağ Deputy and NATO Economic and Security Policy Committee President Faik Öztrak evaluated the press conference where Central Bank Governor Fatih Karahan announced the second inflation report of the year via X. Öztrak stated, 'It is not possible to break entrenched inflationary expectations in seven months. Therefore, these forecasts will be revised many times; this rice will need a lot more water.'

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Central Bank of the Republic of Turkey (CBRT) Governor Fatih Karahan  made statements at the second Inflation Report Briefing Meeting of the year. During the meeting, Karahan  stated, "We will absolutely not allow a permanent deterioration in the inflation outlook. The primary objective of the Central Bank has been to ensure and maintain price stability."

'It is not possible to break inflationary expectations in seven months'

Republican People's Party Deputy Faik Öztrak criticized these remarks by Karahan with the following statements:

"At the press conference where the Central Bank Governor announced the Inflation Report, he said that 12-month inflation would peak at 76% in May and fall to 38% by the end of the year. Accordingly, the Central Bank expects inflation to be 23.1% in the first 5 months."  In order to reach the 38% inflation target for the entirety of 2024, the inflation that will occur in the last seven months (June-December) must be 12.1%. In other words, it is necessary to reduce inflation in the last seven months of this year to less than half of the lowest inflation rate achieved during the years when the self-proclaimed 'interest is the cause, inflation is the result' policies were implemented. It is not possible to break entrenched inflationary expectations in seven months solely by normalizing monetary policy through the removal of irrational measures taken in the past, making it understandable, and tightening it. Therefore, these forecasts will be revised many more times. This rice will need a lot more water."