Turkish fiscal policy will not increase inflationary pressure. The country is starting to experience some disinflationary relief in the second half of the year, Turkish President Recep Erdogan said, quoted by Reuters.
Addressing the Council on Foreign Economic Relations, Erdogan indicated that annual inflation should peak in May before beginning to decline, echoing the central bank's forecasts.
In the second half of the year, we will enter a disinflationary period. We will not allow inflationary pressure through the fiscal policy, he stressed.
In his words, the economic program aims above all to reduce inflation to a single digit number. We are aiming for a sustainable decline in inflation, not a temporary relief, the Turkish president pointed out.
Turkey's annual inflation was close to 70% in April and is expected to reach around 75% in May. The central bank aggressively raised interest rates to 50% last June.