Treasury and Finance Minister Nureddin Nebati on Tuesday said inflation remained the economy’s biggest problem, reiterating the government’s determination to curb rising prices.

Nebati also said there had been a temporary disruption in the food supply after Russia launched an invasion of Ukraine, but stressed that necessary steps were taken by the relevant ministries.

"The biggest problem facing the Turkish economy at the moment is high inflation," Nebati told the Ihlas News Agency (IHA). "We are aware of high inflation and are undertaking many studies to take it under control," he added.

The authorities have vowed to prioritize taking the necessary steps to fight rising prices, as global oil and grain prices surge due to Russia’s aggression of Ukraine. The government has also been monitoring possible risks to the Turkish economy from the conflict.

Russia and Ukraine account for nearly 80% of Turkey’s grain imports but Ankara has said it does not foresee supply shortages due to the war and that it could turn to other sources.

"The stocks of our country in terms of food are at a sufficient level," Nebati said, rebuffing reports claiming the opposite. "The reports that have been made consist of manipulation."

The soaring global prices have added further pressure on the economy – which imports almost all its energy needs – vulnerable to the global rise in oil, gas and grains prices.

Turkey’s annual inflation jumped more than expected to a two-decade high of 54.4% in February, according to official data.

All-out mobilization

Nebati stressed the government ramped up support to get the rise in food prices under control, recalling the recent tax cuts.

To soften the impact on households, the government last month cut tax on basic goods to 1% from 8% and subsidized a significant amount of electricity bills.

It also announced a value-added tax (VAT) cut on electricity used for residential and agricultural irrigation purposes to 8% from 18%.

It also introduced a set of measures to reduce surging power bills, including readjusting the level under which higher electricity tariffs for households and some businesses using more energy kick in.

Nebati stressed that the fight against inflation should include all stakeholders of the economy.

"The support of all our stakeholders in the fight against inflation is certainly very important. We also expect support from legal entities ... in order to complete these steps we have taken," he noted.

"We will continue our efforts in the coming period with the participation of all our stakeholders to reduce the inflation rate."

He also noted authorities were closely following whether recent steps were reflected on market shelves.

"Companies are closely audited and examined by the teams established within the scope of our ministry," Nebati said. "Harsh measures are being taken on a legal basis against companies that impose exorbitant prices and engage in stockpiling."