Structural reforms to help lower inflation, says VP Yılmaz

ANKARA

Structural reforms will help the government bring inflation down to single digits, Vice President Cevdet Yılmaz has said.

“Inflation has reached levels we do not desire, and we see this as a problem,” Yılmaz said at a speech he delivered at a meeting of the ruling Justice and Development Party’s (AKP) Ankara branch.

The effects of the policies implemented are already showing some results, the VP added, referring to the monthly inflation rate.

Inflation came in at just over 3 percent last month, and a downward trend has begun on a monthly basis, Yılmaz said.

“There will be a decline on an annual basis, we will see this towards the middle of 2024… We will reach single digits in 2026."

The government prioritizes the fight against inflation, he reiterated, adding that they will continue to take all necessary steps with determination.

The annual inflation slowed from 61.5 percent in September to 61.4 percent in October.

The month-on-month increase in consumer prices was 3.43 percent last month, down from 4.75 in September and 9.1 percent in August.

Last week, the Central Bank raised its year-end inflation forecast from a previous 58 percent to 65 percent, while lifting the end-2024 forecast from 33 percent to 36 percent.

The bank revised downward the year-end forecast for 2025 from 15 percent to 14 percent.

There will be temporary rises in the monthly inflation path in November, January and May owing to several factors that fall outside the scope of the monetary policy, said Central Bank Governor Hafize Gaye Erkan during the presentation of the bank’s inflation report.