Ankara predicts inflation shrinkage by mid-2024

Turkish Finance Minister Mehmet Simsek has said that he expects inflation in the country to decrease from mid-2024, now the country's economy is going through a transition period.

Türkiye’s annual inflation accelerated to 47.8 per cent in July from 38.2 per cent in June, Caliber.Az reports citing the Turkish Bureau of Statistics (TUIK).

Simsek assessed the inflation data for July published by TUIK on its Twitter page.

Mali tedbirler, döviz kuru gelişmeleri ve ücret artışlarının etkisiyle enflasyon Temmuz’da yıllık yüzde 47,8 ile piyasa beklentileriyle uyumlu gerçekleşti.

Dezenflasyon ile fiyat istikrarının hedeflendiği bir geçiş sürecindeyiz.
Para politikası duruşunun olumlu etkisiyle 2024…

— Mehmet Simsek (@memetsimsek) August 3, 2023

“As a result of fiscal measures, changes in the exchange rate and higher wages, inflation in July was 47.8 per cent year-on-year, in line with market expectations.”

“We are now in a transitional period, the purpose of which is price stabilization and disinflation. Annual inflation will start to decline from mid-2024 as a result of the positive effect of monetary policy. We will support the disinflation process with fiscal discipline,” he said.

The minister wrote the main goal of the Finance Ministry policy is to reduce inflation to single digits in the medium term.