ANKARA'S BRIGHTER FUTURE?
Simśek praises advancement in predictions of inflation rates
Turkey's Finance Minister, Mehmet Şimşek, is feeling the heat of improvement in inflation expectations, ready to carry out the economy program "with grit."
Here's a glimpse of what's brewing in Ankara:
Riding the Inflation Wave
Inflation expectations for the end of 2025 took a dip from 30.35% in May to 29.86% in June, as per the Central Bank's June Survey of Market Participation. Şimşek went on record, stating his enthusiasm for this development, which, he believes, is the result of the rigorous policies implemented so far.
Looking Ahead
Market participants' 12-month annual inflation expectation dropped by a staggering 7.2 points in June compared to the same period last year, settling at 24.6%. Şimşek stresses the importance of the momentum continuing, and he vows to push forward with the program without wavering.
The Disinflation Process
Şimşek acknowledges the current global turmoil but assures that they are keeping a keen eye on geopolitical developments, assessing their potential impact on the economy meticulously.
Intriguing facts about Turkey's economy:
- Turkey's annual inflation in May dropped from 37.86% in April to 35.41%, marking its lowest level since November 2021[1].
- Participants in the survey slashed their inflation expectations for the end of next year from 20.55% to 20.44%. The 24-month ahead expectations also dropped from 17.77% to 17.35%.
As the country navigates these economic waters, Şimşek remains hopeful and steadfast in his commitment to steer Turkey towards a brighter future.
[1] Source: Central Bank of Turkey's June Survey of Market Participation, June 16, 2025.
Financing policies seem to be generating positive results, as Turkey's Finance Minister, Mehmet Şimşek, is optimistic about the ongoing improvement in inflation expectations, indicating his readiness to push forward with the economy program.
The decline in market participants' 12-month annual inflation expectation, as well as the drop in inflation expectations for the end of next year, suggests a continuous disinflation process in Turkey's economy.
