Permanent decline in inflation coming: Şimşek

"The worst is over!… The transition period in the fight against inflation is completed and we are entering disinflation," Finance Minister Mehmet Şimşek wrote on X, commenting on the latest inflation figures.

The annual inflation rate has accelerated from 69.8 percent in April to 75.45 percent in May, data from the Turkish Statistical Institute (TÜİK) showed on June 3.

Consumer prices rose by 3.37 percent last month after increasing 3.18 percent in April.

"We saw the peak in annual inflation, which includes the cumulative effects of the past 12 months. The permanent decline in inflation will begin in June. Annual inflation will most likely fall below 50 percent by the end of the third quarter," Şimşek said.

Inflation expectations will converge closer to the targets in the coming period, he added.

Last month, the Central Bank raised the inflation forecast for the end of 2024 to 38 percent, up from a previous estimate of 36 percent. It kept inflation forecasts for 2025 and 2026 unchanged at 14 percent and 9 percent, respectively. The bank said it expected inflation to stabilize at 5 percent in the medium term.

"We are determined to achieve our goal… Our support to the disinflation process will continue to increase by strengthening fiscal discipline," said Şimşek.

Şimşek in May announced a three-year austerity plan aimed at reducing public spending to help tame inflation.