Inflation in Turkey continues escalating and the CPI rose over 75% during May, according to the latest official data presented by the Turkish Statistical Institute (TÜİK), despite the Turkish government’s insistence that ‘the worst is over’ and that from June onwards we will see a ‘continuous fall’ in prices in the Eurasian country.
The report presented by the official Turkish statistics agency points out that the CPI soared in May to 75.45% compared to the same month last year, mainly driven by price rises in education, housing and hotels and restaurants. On a monthly basis, prices rose by 3.37% in May compared to April.
Despite this bad news, Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, assured through a message posted on X (former Twitter) that ‘the worst is over’ in terms of price rises, and that we are approaching disinflation from June onwards.
‘We have seen this month the highest level of year-on-year inflation, which includes the cumulative effects of the last 12 months. Thus, the transition period in the fight against inflation is complete, and we are entering a process of disinflation,’ Şimşek wrote. ‘The permanent fall in inflation will begin in June. Annual inflation will probably fall below 50% by the end of the third quarter,’ he said.
Last month Turkey’s Central Bank already had to raise its inflation forecast for the end of 2024 to 38% from an earlier estimate of 36%. The Bank nevertheless maintains its forecast for CPI at 14% and 9% for 2025 and 2026, respectively.
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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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