Nowadays, high inflation is one of the main problems for many countries. Some economies are doing a great job in their battle against persistent inflation while others are lagging behind. For instance, Turkey can hardly boast of any achievements in this regard. According to official data, in June, inflation decreased in annual terms, totaling 38.21%.
Although this is the lowest reading for the last 18 months, consumer prices are still unacceptably high.
Turkey's economic program, aimed at financial discipline and curbing inflation, implies gradual monetary tightening and structural reforms. One of the main goals is to bring the Turkish budget deficit to the Maastricht criteria, as well as to lower inflation to a single-digit level in the medium term.
Earlier, the Central Bank of Turkey stressed that it would continue its monetary policy U-turn until the inflation outlook improves significantly. On June 22, the regulator raised the key rate for the first time in more than two years - to 15% from 8.5%. Analysts had expected the reading to come in at 21%.
