Mehmet Şimşek: Significant Progress Made in the Fight Against Inflation
Minister of Treasury and Finance Mehmet Şimşek made statements regarding the November inflation data of the Turkish Statistical Institute (TÜİK). Minister Şimşek emphasized the improvements recorded in inflation in his post on the social media platform and stated that the downward trend continued. The decline in service inflation in particular was evaluated as an important development in the fight against inflation.
Decline in Inflation Figures
Annual inflation was 47.1 percent in November. Şimşek stated that this figure indicated a decrease of 28.4 points compared to May and said, “Annual goods inflation fell below 40 percent despite high food prices.” This decrease shows that the efforts to stabilize the economy are yielding results.
Kasımda yıllık enflasyon yüzde 47,1 gerçekleşti, mayısa göre gerileme 28,4 puan oldu.
— Mehmet Simsek (@memetsimsek) December 3, 2024
Son iki aydır yüksek seyreden gıda enflasyonuna rağmen yıllık mal enflasyonu yüzde 40’ın altına geriledi.
Hizmet enflasyonu aylık yüzde 1,6 ile 2021 yılı Kasım ayından bu yana en düşük… pic.twitter.com/pntdYE4wen
Lowest Level in Service Inflation in the Last 2 Years
The decrease in service inflation stands out as an important step in the fight against inflation. Service inflation was 1.6 percent on a monthly basis in November. This was recorded as the lowest increase rate since November 2021. Şimşek said, “The downward trend in service inflation continues,” and indicated that this development provided significant progress in reducing inflation rigidities.
Food Inflation Remains High
Minister Şimşek drew attention to the fact that food inflation has been high for the last two months. However, he emphasized that despite the increase in food prices, the decreases in goods and services inflation are a positive signal in the fight against inflation. Stating that additional measures should be taken to reduce food inflation, Şimşek said that work in this area will continue.
Improved Inflation Expectations
The improvement in inflation expectations plays a critical role in ensuring economic stability. Şimşek said, “The improvement in inflation expectations is an important step in reducing price rigidities and achieving a more permanent downward trend.” This progress in the fight against inflation is considered to be a reflection of the general recovery in the economy.
Determination in the Fight Against Inflation
Minister Şimşek’s statements reveal that determination in the fight against inflation continues and that the successes achieved in this process are promising for economic stability. Şimşek emphasized the supportive role of fiscal policies and said, “Stronger steps will be taken in the fight against inflation.”
In conclusion, November inflation data show that efforts to stabilize the Turkish economy are bearing fruit. The decline in service inflation in particular and improved expectations are seen as an important turning point in the fight against inflation.
