1- Public Sector Savings Package:
Vice President Cevdet Yilmaz and Minister of Treasury and Finance Mehmet Simsek unveiled details of the public savings package. The package, structured under three main headings, includes measures across various sectors such as vehicles, public buildings, and investment projects. Notably, no new personnel will be recruited to the public sector, except for retirees, and no new vehicle purchases or rentals will be made for three years.
2- Budget Deficit Reached ₺691 Billion in Four Months:
According to the Ministry of Treasury and Finance’s April data, the central government budget recorded a deficit of ₺177.8 billion in April, bringing the four-month deficit to ₺691.3 billion.
3- Bridge-Highway Price Hike’s Limited Impact on Inflation:
Minister Mehmet Simsek stated that the recent price hike on bridges and highways will have a limited effect on annual inflation.
4- US Core Inflation Slowed for the First Time in Six Months:
In April, the US Consumer Price Index (CPI) rose by 0.3% monthly, below market expectations. The Core CPI, excluding volatile energy and food prices, also increased by 0.3% monthly and 3.6% annually, marking the first slowdown in core inflation in six months.
5- Rapid Increase in CBRT Reserves:
The Central Bank of the Republic of Turkiye (CBRT) saw a significant increase in total reserves, rising by $7.547 billion to reach $134.402 billion as of May 10. This marks the strongest reserve increase in the last three years.
6- 12-Month Inflation Expectation at the Lowest Level in 10 Months:
The CBRT’s market participants survey for May revealed that inflation expectations for the next 12 months have decreased, aligning closely with the CBRT’s own year-end inflation forecast.
7- Real Loss in Housing Deepens:
CBRT data indicated that the annual increase in house prices was 51.99% in March, which is 16.5 points behind the annual inflation rate, highlighting a real loss in the housing market.
Source: Bloomberght / Prepared by Irem Yildiz