In May, the cost of living in Turkey continued to rise, with inflation reaching 75.5 percent, one of the highest rates globally. However, Turkish Finance Minister Mehmet Simsek remains optimistic, stating on social media platform X that "the worst is behind us."
Simsek predicts that inflation will begin to decrease from June, with expectations that it will fall below 50 percent by September. Policymakers are hopeful that the inflation rate will reach 38 percent by the end of the year.
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President Recep Tayyip Erdogan had previously resisted raising interest rates, a common strategy to combat inflation. His refusal led to the dismissal of several central bank presidents who disagreed with his approach.
Following his election victory last year, Erdogan pledged to improve the economic situation and has since implemented more traditional economic policies. This shift has contributed to a more favourable assessment of Turkey's economic prospects by international observers.
Source: www.nu.nl