Şimşek hails Improvement in Inflation Expectations

Inflation expectations for the end of 2025 declined from 30.35 percent in May to 29.86 percent in June, the Central Bank’s June Survey of Market Participation showed on June 16.

“It is very important that this improvement in expectations, which is the result of the holistic policies we have implemented, continues. We will continue to implement the program with determination,” Şimşek wrote on X on June 17, commenting on the results of the bank’s survey.

He noted that market participants' 12-month annual inflation expectation decreased by 7.2 points in June compared to the same month last year, to 24.6 percent.

The improvement in inflation expectations is of critical importance in the disinflation process, the minister stressed.

“In this period of increasing global uncertainty, we are closely following the course of geopolitical developments and evaluating their possible repercussions on our economy in detail,” Şimşek said.

Turkey's annual inflation was at 35.41 percent in May, down from 37.86 percent in April, its lowest level since November 2021.

Participants of the survey lowered their inflation expectations for the end of next year from 20.55 percent to 20.44 percent.

The 24-month ahead expectations also fell from 17.77 percent to 17.35 percent, according to the Central Bank’s survey, which monitors the expectations of decision-makers and experts in the financial and real sectors.

Source: HDN