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Trkiye leaves ‘hardest’ time in inflation behind, at threshold of disinflation: Finance minister


The “hardest” time in inflation was left behind by Trkiye, the Turkish treasury and finance minister stated on Thursday, adding that the country is at the threshold of a disinflation period.

Mehmet Simsek said the annual inflation rate will probably drop to 60% next month and 50% in the following month, and may go below 50% in coming months. The rate was at 71.6% in June.

Speaking at the Turkish Industry and Business Association’s (Tusiad) event in Istanbul, the minister said the country also aims to end 2024 with the Central Bank target of 38%.

The country’s plan is to reduce the rate below 20% for the next year and below 10% for 2026, he added.

He noted: “Looking at 100 inflation shocks in 56 countries around the world, it takes an average of 3-4 years to return to pre-shock levels in inflation.

“We have just completed our first year, in terms of the program, this program is working and we will succeed.”

Orhan Turan, head of Tusiad, said the country should continue to fight inflation until desired le
vels, adding that the association supports the government’s fight.

Source: Anadolu Agency