Turkey’s Inflation Rate Shows Signs of Stabilization Following Erdogan’s Policy Shift

Turkey’s inflation rate remained close to 60% last month, marking the first sign that President Recep Tayyip Erdoğan’s shift in economic policy may be taking effect, according to official data released on Thursday by the Turkish Statistical Institute (TUIK). The data showed a 12-month consumer price increase of 61.5% ending in September, compared to 58.9% in August and 47.8% in July.

Notably, the monthly rise in consumer prices slowed to 4.8%, down from 9.1% in August. This comes after Erdoğan approved a series of drastic interest rate hikes, lifting the policy rate from 8.5% to 30% within four months. The president, who had long advocated against high interest rates, changed course following a challenging May election amid the worst economic crisis in his 20-year tenure. Erdoğan has since entrusted Turkey’s economy to a team of market-friendly technocrats with Wall Street experience, gaining widespread support from foreign investors.