Erdogan expects inflation in Turkey to slow down after May

The situation with inflation in Turkey will begin to "regress" after May and the first positive developments in the country's economy will be observed in late 2022, given the steps and precautions taken by the government, Turkish President Tayyip Erdogan said on Saturday.

On Thursday, the Turkish Central Bank raised its inflation forecast for late 2022 from 23.2 pc to 42.8 percent.

"We have been closely monitoring all developments and taking the necessary precautions. Let our people not worry, we will address this problem. Our goal is to reduce inflation. Given the steps that we have taken and will take, let's hope that the situation will begin to regress after May. I can say that by the end of the year this will lead to a more positive outlook," Erdogan told reporters on his return from Saudi Arabia.

At the same time, the Turkish leader stressed that high inflation is observed not only in Turkey but elsewhere in the world, especially in developed countries, due to the deterioration of the global economy.

In 2021, after a series of reductions in the key rate, the Turkish lira suffered a sharp fall, losing over 50 pc of its value to the US dollar. On December 16, the Turkish Central Bank reduced the key rate by 100 basis points from 15 pc to 14 pc and continues to keep it unchanged since.

At the same time, the Turkish lira continues to lose its value. By the end of January, the exchange rate was 13.5 lira per dollar, and in April it stood at 14.82 lira per dollar. On April 4, the Turkish Statistical Institute said that the country's annual inflation rate accelerated to 61.14% in March compared to 54.44 pc in February. (ANI/Sputnik)

( With inputs from ANI )