Inflation set to halve by July amid economic revival

Finance Minister Mehmet Simsek forecasts a significant decline in inflation after the May peak of around 73% to about 40% in July

Türkiye’s economic landscape is undergoing significant changes, with Finance Minister Mehmet Simsek’s latest announcements on inflation trends and the central bank’s proactive stance on monetary policy.

Simsek provided critical insight into the expected trajectory of inflation in Türkiye. Due to the base effect, he predicts a peak of about 73% in May, followed by a substantial drop to around 40% in July.

This projection indicates a turning point in Türkiye’s struggle with high inflation. Simsek stated, “We expect inflation to peak in May and fall to around 40% in July,” emphasizing the government’s focus on combating inflation and stabilizing the economy.

Addressing concerns about the accuracy of inflation data, Simsek firmly denied any manipulation of figures. He stressed the integrity of the Turkish Statistical Institute (TurkStat) and his own commitment to transparency, saying, “I cannot lie. Whatever the situation with inflation, that’s what it is. I don’t even know the head of TurkStat personally.”

The Central Bank of the Republic of Türkiye has expressed its dedication to achieving price stability. In an open letter to the government, it emphasized the importance of adhering to the economic program’s medium-term targets. This communication reflects the bank’s crucial role in guiding the economy toward stability and sustainable growth.

Source: Newsroom