Türkiye's inflation expectations improving: Finance minister

By Mucahithan Avcioglu

ISTANBUL (AA) - Turkish Treasury and Finance Minister Mehmet Simsek stated on Tuesday that there is an improving trend in the country's inflation expectations, which also supports the disinflation process.

"The real sector's and households' 12-month ahead inflation expectations decreased by 16 points and 19 points compared to the same period last year, respectively, to 37.7% and 54.1%," Simsek wrote on Turkish social media platform NSosyal.

He stated that the market participants' inflation expectations stood at 22.8%.

Simsek stressed that the improving trend in expectations is supporting the disinflation process.

"We will continue to resolutely implement our program to establish lasting price stability," he added.

The annual inflation in Türkiye was down to the 44-month low of 33.5% in July, down from 35.05% in June.

Meanwhile, the Turkish Central Bank said earlier this month that it expects the annual inflation to fall to 24% at the end of the year, before dropping to 16% in 2026 and to 9% in 2027, and stabilizing at 5% in the medium term.