Inflation in Turkey reached a new peak, at 75.45% year-on-year in May

Turkish authorities assure that prices will start to fall in June.

Inflation reached 75.45% year-on-year in May in Turkey, compared to 69.8% in April, according to official data published Monday June 3. This rate is in line with forecasts from the central bank, which ensures that prices will fall from June. Consumer prices rose by 3.7% over one month, announced the National Statistics Office (Tüik), confirming the upward forecasts of the Turkish central bank.

“The hardest part is over”welcomed X the Minister of the Economy, Mehmet Simsek, reaffirming that “the permanent decline in inflation will begin[it] in June”. “This month we have seen the highest level of annual inflation, which includes the cumulative effects of the last 12 months. Thus, the transition period in the fight against inflation has been completed and we are entering the process of disinflation”adds the minister.

According to him, the year-on-year inflation rate will be “most likely below 50% by the end of the third quarter”. “The market is pricing in disinflation and expects annual inflation to be 33.2% after 12 months and 21.3% after 24 months.” According to the group of independent economists Enag, the real inflation rate over twelve months reached 120.66% in May, with an increase of 5.66% over the month.

To counter the surge in consumer prices, largely responsible for the electoral defeat of the ruling AKP party at the end of March in the municipal elections, Mehmet Simsek launched a three-year austerity plan in April. Certain measures must be submitted to Parliament.