Finance Minister Mehmet Şimşek announced a decline in inflation expectations. Şimşek stated that the year-end inflation expectation dropped to 43%, the 12-month expectation fell to 30%, and the 24-month expectation decreased to 19.3%.
After announcing the targets set within the scope of the government’s Medium-Term Program (MTP), Şimşek emphasized that there has been a continuous decrease in inflation expectations, especially for the 12 and 24-month periods.
Despite an increase in annual inflation during this period, the improvement in expectations reinforces the belief that deflationary policies will be successful, he explained. Şimşek projected a temporary rise in monthly inflation due to transitory effects in July but foresees a significant decrease in annual inflation.
Şimşek highlighted that the deflation process will become more pronounced in the coming months and stated that this process will be closely monitored.
Source: Ministry of Finance Statement.