Message from Minister Şimşek on Inflation: Signs of Improvement in the Real Sector

The Minister of Treasury and Finance Mehmet Şimşek shared important information regarding inflation expectations in the Turkish economy through his recent statements on social media. Minister Şimşek stated that they anticipate an improvement in market expectations as the disinflation process in inflation continues. In this context, a rise in inflation was observed due to increased food prices caused by drought experienced in September and seasonal factors.

He expressed that this increase brought limited deterioration to the 12-month ahead inflation expectations, particularly at the level of market participants and households, while emphasizing that the inflation expectations of the real sector developed positively. Stating that the realized inflation data plays a critical role in shaping market expectations, Şimşek noted that the ongoing disinflation process would further improve these expectations.

When evaluating the current economic situation, Minister Şimşek indicated that Turkey has taken significant steps in combating inflation and that there is a need to support the real sector in this process. The management of inflation expectations is crucial in line with the goals of economic stability and sustainable growth. The Minister emphasized that cooperation between the state and the market is essential in managing these uncertainties in inflation and reassured that necessary steps would be taken.

In conclusion, the improvement in the real sector's inflation expectations is considered a promising sign for the overall direction of the economy. As the disinflation process continues, expectations of market participants and households regarding the future may further improve. In this regard, Minister Şimşek's statements are closely monitored and discussed within economic circles.