The year-on-year inflation rate in Turkey fell below 40% in May for the first time in 16 months, standing at 39.6%, according to data released today by the Turkish Statistical Institute (TÜİK). The decline, which continues a trend in recent months, has been in this case driven by a measure adopted by the Turkish government, who offered free natural gas to consumers starting in May, at a cost close to $2 billion dollars for public accounts.
Even so, compared to the previous month, the CPI increased a few tenths (0.04%) in May, and core inflation (which excludes energy and food) increased month-on-month by 4.25%. Compared to April, the increases in clothing and footwear (9.85%) and restaurants (7.10%) stood out, while housing fell by 13.79%. Following the announcement of the new government cabinet on Saturday, Turkey’s long-awaited new Finance Minister Mehmet Şimşek vowed to achieve price stability and fight inflation to put it below 10%, reduce the deficit, improve fiscal discipline, and carry out the necessary structural reforms to “rationalize” the economy.
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Edited and reviewed by:
Pablo Gómez is a specialist in Turkey and has been editor-in-chief of Hispanatolia since 2011. He has been analysing current affairs and geopolitics in Turkey and the surrounding region since 2006.
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