The Turkish government is exerting great effort against inflation and the rising cost of living, which weigh heavy on citizens, President Recep Tayyip Erdoğan said on Friday, Ednews reports citing Ahval news.

The government is trying its best to ensure that citizens are not “crushed” under the weight of inflation, state-run Anadolu news agency cited Erdoğan as saying at the inauguration of a new airport in Turkey's northern Tokat province.

“We are waging a great struggle for the (recovery of the) economy,” he said. “Do not let anyone be fooled by temporary troubles. We are going to overcome the problem of the high cost of living, too.”

Turkish citizens are reeling from the effects of soaring inflation, which registered 54 percent in February, marking a two-decade high.

Turkish consumers have been hit with rapidly rising prices following a series of Erdoğan-led interest rate cuts last year, which sparked a currency crisis sending the lira to record-breaking lows. The currency lost 44 percent of its value in 2021.

The Turkish president maintains the unorthodox financial policy that high borrowing costs cause inflation, a position that contradicts established economic thinking.

“Like every change and every revolution, we are experiencing the pain of this process, but I hope a prosperous future is waiting for us that will be worth all our sacrifice,” Erdoğan said.

Erdoğan’s government in February reduced value-added tax on basic foodstuffs to 1 percent from the previous 8 percent in a bid to ease the burden on citizens against the skyrocketing cost of living amid high inflation.

Treasury and Finance Minister Nureddin Nebati said that credit supports would be provided to businesses and exporters, and a mobile application would be launched to enable citizens to access affordable products, as part of a relief package, Reuters reported.

The new measures were aimed at bringing “under-the-mattress” gold into the economy, Nebati said.

• Tags:
• Turkish economy
• Inflation