Turkish Treasury and Finance Minister Mehmet Şimşek has emphasized the positive effects of the country’s ongoing disinflation process on inflation expectations across various sectors.

In a statement regarding the Central Bank’s November Sectoral Inflation Expectations report, Minister Şimşek noted that improved inflation expectations are playing a key role in reducing inflation rigidities.

“The disinflation process positively affects inflation expectations in all segments,” Minister Şimşek stated.

According to the data, expectations for the next 12 months have improved significantly since May, when inflation reached its peak. Specifically, inflation expectations have risen by 12 points among households, 8.2 points in the real sector, and 6 points among market participants.

Minister Şimşek added that this improvement in expectations is contributing to the decline in inflation rigidities, signaling progress in Turkey’s efforts to bring inflation under control. Reducing inflation rigidity has become a central focus of the government’s strategy to stabilize prices and manage economic expectations.

The Turkish government has prioritized stabilizing inflation, and the ongoing disinflation process is a key part of its broader economic strategy. Minister Şimşek’s remarks come as part of the government's continued efforts to address Türkiye’s economic challenges and strengthen both investor and consumer confidence in the financial outlook. (ILKHA)