Turkey's Inflation Drops: Central Bank Considers Rate Cut

Turkey's inflation rate fell to 35.4% in May, the lowest since November 2021. This decline raises the possibility of an interest rate cut by the Central Bank of the Republic of Turkey (CBRT). Consumer price increases have slowed for twelve consecutive months after peaking at 75% last May. The CBRT previously raised its key interest rate to 46% in April. This decision followed economic pressures and a lira slump. The central bank may now consider resuming its easing cycle sooner than anticipated. Economists suggest a rate cut this month is possible. However, the ENAG group estimates a higher inflation rate of 71.2%, disputing the official figures.