Inflation set to plummet by year’s end, says finance chief

Treasury and Finance Minister Mehmet Simsek Tuesday highlighted the progress of disinflation with August figures, saying that inflation will drop by year’s end.

“Thanks to strengthened financial stability, economic adjustments, and improved expectations, we anticipate a reduction in the monthly inflation trend in the last quarter. Consequently, we project that inflation will fall within the forecast range by year’s end,” the minister said.

In a social media post, Simsek assessed the inflation data for August, which was released on Tuesday by the Turkish Statistical Institute.

Simsek drew attention to annual inflation and changes in monthly food prices, noting, “Disinflation is becoming more apparent. Over the past three months, annual inflation has decreased by 23.5 percentage points to 52%.”

“Due to temporary factors, monthly inflation in August was 2.5%, and excluding administered and directed prices, it was 1.4%. Notably, monthly food inflation turned negative for the first time in four years,” he said.

Looking ahead, Simsek added:

“With ongoing improvements in financial stability, economic balancing, and expectations, we foresee a decline in the main trend of monthly inflation in the final quarter. Therefore, we expect inflation to stay within the forecast range by year-end. Our commitment to meeting program targets is unwavering. In a climate of falling inflation, financial stability, and balanced growth, it is crucial for the private sector to enhance cost and inventory management while focusing on efficiency, innovation, and high value-added production.”