Istanbul: Trkiye's annual inflation is anticipated to decline to figures in the 20% range by February, coinciding with the release of January figures, as stated by the Turkish treasury and finance minister on Thursday. Speaking at the fifth Future of Finance Summit in Istanbul, Mehmet Simsek emphasized the country's efforts to achieve inflation targets, albeit on the higher end of projections, by 2026.

According to Anadolu Agency, Simsek highlighted the progress made over the past three years, with inflation decreasing from approximately 64%-65% to 44%, and currently standing at 31%. He noted that the target range for next year is set between 13%-19%, although market expectations suggest it will be in the 20s. He reiterated that, barring any unforeseen shocks, attaining the upper end of the target range is feasible.

Simsek outlined Trkiye's macroeconomic stability and reform program, which aims to bring inflation down to single digits, enhance predictability, achieve a sustainable current account balance, and ensure the permanence of these improvements.

He elaborated on the structural transformation programs implemented in this context, explaining that the first phase involved risk management during a control period. The second phase addressed existing imbalances. Simsek described the third phase as achieving targets permanently through structural transformation, with a largely established rule-based market economy marking the first phase's success.

"It was important that inflation did not get out of control. There were many issues such as reserve accumulation and contingent liabilities. We managed those issues in the first year," Simsek concluded.