Turkish finance minister downplays high January inflation, expects drop in coming months

Despite the Consumer Price Index (CPI) hitting a staggering 64.86% year-on-year increase in January, Turkish Finance Minister Mehmet Şimşek downplayed concerns, stating that the figure does not reflect the "underlying trend" and a significant decline is expected in the coming months.
05.02.2024 12:56:59 / English News

"We do not expect the effects reflected in inflation in January to affect the underlying trend," Şimşek said in a social media post. "As of February, we anticipate that inflation will fall significantly and be in line with our forecasts."

Ocak ayında aylık enflasyon geçici etkiler kaynaklı yükselerek yüzde 6,7 gerçekleşirken, yıllık enflasyon yüzde 64,9 oldu.

Ocak ayında büyük oranda enflasyona yansıyan bu etkilerin enflasyonun ana eğilimini etkilemesini beklemiyoruz.

Şubat’tan itibaren aylık enflasyonun kayda…
— Mehmet Simsek (@memetsimsek) February 5, 2024

While the Minister downplays the January figures, the high inflation rate remains a major concern for Turkish citizens and businesses. The sharp increase in prices erodes purchasing power and creates economic uncertainty.

The government has implemented measures to combat inflation, including raising interest rates and tightening fiscal policy. However, these measures also carry risks, such as slowing down economic growth.

Whether the Minister's prediction of a significant inflation drop materializes remains to be seen. The coming months will be crucial in determining the effectiveness of the government's policies and the overall health of the Turkish economy. (ILKHA)