Prices are not under government control, nor can the government cause or contain inflation, Finance Minister Jürgen Ligi (Reform) told ERR as a response to the latest inflation figures.
Finance Minister Jürgen Ligi (Reform) told ERR in an interview that the public outcry over inflation is misplaced, arguing that most price increases are beyond the government’s control and should not be a focal point of political or economic debate.
“Talking about price increases is as stupid as cursing bad weather when you wake up in the morning,” Ligi said.
The minister acknowledged that the recent value-added tax (VAT) hike may have contributed slightly to inflation — by an estimated 1.64 percent — but dismissed the idea that such changes are the primary cause of rising prices. It’s “shameless” to make this a central issue when inflation is largely out of our hands, he suggested.
He also noted that retailers’ growing profit margins reflect investment in upscale infrastructure, which inevitably gets passed on to consumers. However, Ligi argued that if inflation were truly making people poorer, consumption would have already decreased, easing price pressures.
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