Turkey is experiencing a severe inflation crisis with annual consumer price inflation reaching 75.45% in May.

Independent economists estimate the real inflation rate to be even higher at 120.66%.

In response, the government has introduced a three-year austerity plan following a recent electoral defeat.

The central bank raised its policy rate to 50% and revised its year-end inflation forecast to 38%.

Despite the current situation, there is optimism that inflation will begin to ease starting in June.

Foreign investors are showing increasing interest in Turkey, particularly in local bonds and credit default swaps.

The government is committed to maintaining the 50% interest rate until a significant and sustained reduction in inflation is achieved.