Erdoğan: Inflation will significantly and permanently decrease this time next year

President Erdoğan spoke through pro-government media on the plane during his return from his trip to India for the eighth G20 Leaders’ Summit. Down below are the key points shared by the President:

EVERYTHING IS UNDER CONTROL

“Hopefully, at this time next year, we will see inflation significantly and permanently decrease.”

“Structural reforms will strongly support fiscal and monetary policies. I believe that Turkey’s credit rating will have to be upgraded.”

“Right now, everything is under control, and with well-balanced policies and structural reforms, we will bring Turkey back to single-digit inflation.”

WHAT DOES THE MEDIUM-TERM PROGRAM (OVP) ANTICIPATE?

In the Medium-Term Program (OVP) announced yesterday for the period 2024-2026, growth targets were lowered while inflation and the USD/TRY exchange rate targets were raised.

The inflation target for the year 2023 was set at 65%, and for 2024, it was set at 33%. The Central Bank had previously announced an inflation target of 58% for 2023 in its inflation report. The 2024 estimate was at the 33% level.

In last year’s program, the inflation target was set at 24.9% for 2023, 13.8% for 2024, and 9.9% for 2025.