Türkiye's Minister of Treasury and Finance, Mehmet Şimşek, provided an update on the Central Bank's January Sectoral Inflation Expectations through a social media post on Tuesday.

"The improvement in inflation expectations continues,” Şimşek noted, detailing that the market's annual inflation expectation for the next 12 months stands at 25.4%. This figure shows a significant improvement when compared to expectations from May 2024, with household expectations dropping by 17 points and the real sector's by 12 points.

However, the minister acknowledged that despite these improvements, inflation expectations remain high relative to the broader inflation outlook. He emphasized the importance of these expectations in influencing the pace of disinflation, stating, "Inflation expectations are critical for the pace of disinflation. We anticipate that expectations will further support disinflation in the upcoming period."

Şimşek concluded his statement with a commitment to economic stability, saying: "We will increase the purchasing power of our citizens by permanently reducing inflation with the programme we implement with determination."

This statement reflects ongoing efforts by the Turkish government to manage inflation and bolster economic recovery, highlighting both the progress made and the challenges that lie ahead. (ILKHA)