For Turkey, the issue of galloping inflation is one of the most painful. According to Turkish Minister of Treasury and Finance Mehmet Şimşek, everything is not as bad as it seems at first glance. Annual inflation may peak in May, thus exceeding 70%, and then it will start to decline.
The reforms developed by Turkish authorities will come into effect later. As a result, price growth will slacken, thanks to which inflation will enter acceptable limits. It is expected to fall significantly by 2026. "However, we have a long road ahead of us for overcoming the global challenges," Mehmet Şimşek said.
Notably, last month, Turkish inflation accelerated to 70% on a yearly basis. The Turkish Statistical Institute predicted that this figure might increase to 69.8% from 68.5% by May.
At the same time, analysts and market participants, surveyed by the country’s central bank, expect inflation to decrease to 44.16% by the end of 2024. Against this background, the exchange rate of the national currency may fall to 40.01 lira per 1 US dollar.