ISTANBUL

Türkiye's annual inflation rate is projected to drop to 42.95% by the end of this year, according to a Central Bank survey released on Monday.

The previous estimate of the survey, based on market participants, was 43.52%, the bank's statement read.

The 12-month-ahead forecast is 30.02%, down from 31.79%, and the 24-month-ahead forecast is 19.32%, down from 20.33%.

Mehmet Şimşek, the Turkish Treasury and Finance Minister, stated on the X platform that improving expectations, despite rising actual annual inflation, reflect confidence in the government's disinflationary policies.

"Although we expect an increase in monthly inflation in July due to temporary effects, we anticipate a significant decline in annual inflation," he noted.

The disinflation process will become more evident in the coming months, he added.

Türkiye's annual consumer inflation rate slowed to 71.60% in June, down from 75.45% in May.