Minister Simsek Highlights Declining Inflation Expectations, Signals Success of Economic Policies
In a recent social media post, Turkiye’s Minister of Treasury and Finance, Mehmet Simsek, expressed optimism about the country’s economic outlook, emphasizing that inflation expectations are aligning closely with targets. Minister Simsek referenced the Central Bank of the Republic of Turkiye (CBRT) Market Participants Survey, noting significant declines in inflation expectations for the coming months.
“Inflation expectations are nearing our target,” Minister Simsek stated. “Year-end inflation expectations have dropped to 43%, while the 12-month and 24-month expectations have decreased to 30% and 19.3%, respectively. Since we announced our Medium-Term Program (OVP), inflation expectations for the next 12 and 24 months have continuously declined.”
Despite the current rise in annual inflation, Minister Simsek highlighted the improving expectations as evidence of the effectiveness of the government’s disinflation policies. “Even though we anticipate a temporary rise in monthly inflation in July due to transient factors, we foresee a significant drop in annual inflation. The disinflation process will become more pronounced in the coming months,” he added.
Source: Trthaber / Prepared by Irem Yildiz
