Finance Minister Simsek foresees permanent decline in inflation
In May, Türkiye’s annual inflation rate reached 75.45%, up from 69.8% in April, according to official figures released by the Turkish Statistical Institute (TurkStat) on Monday.
TurkStat reported that clothing and footwear experienced the lowest annual increase, at 50.85%, while education recorded the highest at 104.8%.
Monthly, consumer prices rose by 3.37% in May 2024, after increasing by 3.18% in April.
The communication sector registered the lowest monthly increase at 1.01%, whereas clothing and footwear saw the highest monthly increase at 9.6%, marking the main group with the most significant rise.
Turkish Finance and Treasury Minister Mehmet Simsek previously stated that the inflation rate had reached its peak in May and was expected to follow a path of disinflation.
The rate is expected to drop to 40% in September.
‘The worst is over’
Simsek announced that the worst of inflation is behind us, anticipating a permanent decline starting in June. He expects annual inflation to drop below 50% by the end of the third quarter.
Simsek shared May’s inflation data on social media, highlighting that this month saw the peak of annual inflation influenced by the cumulative effects of the past 12 months.
“The worst is over,” Simsek said.
Highlighting the completion of the transitional phase in the fight against inflation and the start of the disinflation process, Simsek stated: “Permanent declines in inflation will begin in June. Annual inflation will likely drop below 50% by the end of the third quarter.
The market expects annual inflation to be 33.2% in 12 months and 21.3% in 24 months. In the upcoming period, expectations will further align with our targets. We will continue to support the disinflation process by strengthening fiscal discipline. We are determined to reach our goal by achieving price stability requires patience and time.”
