A significant improvement in inflation expectations has been announced.

Minister Şimşek's Inflation Report

The Minister of Treasury and Finance Mehmet Şimşek announced that there has been a significant decrease in inflation expectations as of January. Minister Şimşek stated that inflation expectations for 12 months ahead have declined by 6.7 points in households, 10.9 points in the real sector, and 3.2 points among market participants compared to the same period last year.

Market Expectations and Targets

In a post on his social media account, Minister Şimşek referred to the Sectoral Inflation Expectations data for January from the Central Bank of the Republic of Turkey (TCMB). He noted that the year-end inflation expectation, standing at 23.2%, is above their targets. However, he also indicated that it signifies a significant improvement relative to the current inflation level.

Disinflation Process and Structural Steps

Şimşek emphasized that the downward trend in inflation expectations continues. He noted that household inflation expectations, similar to other countries, are running above actual inflation realizations and trends. He mentioned that there may be monthly inflation increases in January due to expected seasonal effects, but the progress to be made throughout the year in the disinflation process will further improve expectations.

The minister stated, "We will continue to implement our disinflation-focused policies supported by structural steps with determination."