Inflation in Turkey slowed to the lowest level since December 2021

Inflation in Turkey has slowed to its lowest level since December 2021. According to Reuters, annual inflation in June was 38.21%, the lowest since the end of last year. Price pressure is expected to increase again in the summer. Reuters forecasts predicted that annual inflation in June would be 39.47%, and by the end of the year it is expected to reach 51.5%.

At the same time, monthly inflation in June rose to 3.92%, the highest since the beginning of the year, due to the depreciation of the Turkish lira after the re-election of President Erdogan. The monthly inflation rate remained below the Reuters forecasts, which predicted it at 4.84%.

A significant increase in inflation in Turkey was observed as a result of the currency crisis at the end of 2021, which arose due to lower interest rates at the urging of President Erdogan, who believed that interest rates were leading to higher inflation. In October, annual inflation peaked at 85.51% over the past 24 years, but then began to decline.

This year, the Turkish lira has lost about 30% of its value, and in June alone - more than 20%.

President Erdogan, who was re-elected in May, has announced a return to more orthodox economic policies, including raising interest rates.