Mehmet Şimşek, Türkiye’s Minister of Treasury and Finance, announced a notable improvement in inflation expectations among market participants and the real sector, signaling cautious optimism in the country’s economic stabilization efforts.

In a statement posted on X, Şimşek highlighted key data points and reaffirmed the government’s commitment to achieving price stability.

According to Şimşek, the 12-month-ahead inflation expectation among market participants has dropped to 24.6 percent, while the real sector—comprising businesses and industries—sees it at 41.1 percent. However, he noted a slight uptick in household inflation expectations. Şimşek emphasized that these figures, derived from recent surveys, do not yet account for the latest financial market volatility, though he expects its impact on expectations to be temporary and minimal.

The minister attributed the improving outlook to tightened financial conditions and robust coordination across government institutions. “We assess that the steps taken… will be disinflationary,” Şimşek stated, underscoring the government’s resolve to press forward with its economic program. “We will implement our programme with determination until we achieve price stability.”

Türkiye has faced persistent inflationary pressures in recent years, prompting a series of policy measures aimed at curbing rising costs and restoring economic confidence. Şimşek’s remarks suggest a belief that these efforts are beginning to yield results, though challenges remain as the government navigates market fluctuations and public sentiment. (ILKHA)