Cevdet Yılmaz: The disinflation process is strengthening, inflation has decreased to 30.89%.

Cevdet Yılmaz's Inflation Assessment

Evaluating the inflation data announced by the Turkish Statistical Institute (TÜİK) on X account, Cevdet Yılmaz stated that consumer inflation in December was realized at 0.89% and annual inflation has decreased to %30.89.

Decrease in Agricultural Production and Increase in Food Prices

Yılmaz noted that the frost and drought events that occurred this year have led to a reduction in agricultural production, resulting in a temporary rise in food prices. He also mentioned that it would affect the 2025 year-end inflation exceeding expectations. Yılmaz stated, "With the normalization of price-setting behavior and demand stabilization, the decrease in inflation has reached 44.6 points compared to May 2024."

Improvements in Price Increases and Future Goals

Forecasting that core goods inflation will decrease to 17.7% by the end of 2025, remaining 13.2 points below consumer inflation, Yılmaz also indicated that the slowdown in service inflation will continue. He shared that there will be significant decreases in the rate of price increases for items such as education and rent.

Strategic Goals for Next Year

Yılmaz emphasized, "We aim to bring inflation below the %20 levels by 2026. This will lead to lasting improvements in pricing behavior, and from 2027 onwards, inflation is expected to return to single-digit levels," highlighting the importance of the disinflation process.

Combatting Inflation with Supply-Side Policies

Pointing out that supply-side policies to be implemented in areas such as social housing, food, logistics, and renewable energy will strengthen the fight against inflation, Yılmaz expressed that maintaining fiscal discipline and price determinations in line with target inflation will support the disinflation process.