Finance minister promises greater impact as Türkiye’s inflation falls to 61.78%

Türkiye’s annual inflation rate declined to 61.78% in July, showing signs of improvement following the government’s continued efforts to stabilize the economy.

This marks a significant decrease from the June rate of 71.6%.

CPI, PPI trends

• The Consumer Price Index (CPI) rose by 3.23% in July, while the Producer Price Index (PPI) increased by 1.94%.
• Compared to December 2023, CPI has risen by 28.76%, and PPI by 21.81%.
• Year-on-year, CPI increased by 61.78%, the lowest level since November 2023, and PPI by 41.37%.

What do officials say?

• “Our fight against inflation, which we consider a primary economic and social priority, continues unabated. The disinflationary process that began in June has accelerated, bringing us closer to our target. We expect consumer inflation to drop into the 50% range in August and below 50% in September,” says Cevdet Yilmaz.
• “Despite the temporary price increases in certain items, annual inflation has notably decreased by approximately 10 points, reflecting our commitment to long-term economic stability.”

Finance Minister Mehmet Simsek during his speech shed light on his goal toward curbing inflation, saying that the government is committed to its economic program to provide relief to people.

• “The 9.8-point drop in annual inflation from June to July is a clear indication that our disinflation program is yielding positive results across the board. Moving forward, the decline in inflation will be felt even more strongly, allowing us to enhance the long-term welfare of our citizens,” said Mehmet Simsek.
• “Our goal remains clear: to establish price stability, and by doing so, to permanently improve the quality of life for our people.”

• “The government’s unwavering commitment to its economic program is yielding results, as evidenced by the decline in both the trade deficit and inflation rates. The improvement in core inflation indicates a more pronounced slowdown in the main inflation trend, giving us confidence in the sustainability of this progress,” says Omer Bolat.
• “We are determined to continue our efforts to raise the living standards and purchasing power of our citizens, focusing particularly on achieving sustained price stability.”

Economic outlook

• Core inflation: The decrease in core inflation signals a more stable underlying inflation trend, suggesting that the government’s measures are beginning to have a broader impact on the economy.
• Future projections: Officials remain optimistic about continued improvements, projecting further reductions in inflation rates in the coming months. The ultimate goal is to achieve single-digit inflation by 2026, enhancing economic predictability and improving the overall welfare of the population.