Turkish Inflation Falls Below 40% for First Time in 16 Months, but Experts Are Divided

• The Turkish government has been criticized for its economic policies, which have led to a sharp rise in inflation.
• The Turkish lira has lost half of its value in the past year.
• The Turkish economy is facing a number of challenges, including a high unemployment rate and a large trade deficit.

Turkish inflation has fallen below 40% for the first time in 16 months, but experts are divided on whether this is a meaningful figure.

In May, Turkey's annual inflation rate dropped to 39.59%, according to official data. This is down from a high of 73.5% in December 2021. However, some experts believe that the true figure is much higher, as the government has been accused of manipulating the data.

Erdal Yalcin, professor of international economics at Konstanz University of Applied Sciences, told us that the fall in inflation is "not a meaningful figure". He said that the government's temporary offer of free gas to households has artificially lowered the inflation rate. He also said that the Turkish lira has continued to lose value, which means that the cost of imported goods has increased.

Another expert, Ahmet Insel, disagreed with Yalcin. He said that the fall in inflation is "a positive sign" and that it shows that the government's economic policies are starting to work. He also said that the Turkish lira is starting to stabilize.

It is too early to say whether the fall in inflation is a lasting trend. However, the Turkish government is under pressure to keep inflation under control. If inflation continues to rise, it could lead to social unrest and a loss of confidence in the government.