Inflation Assessment by Mehmet Simsek: Expectations Continue to Improve
Minister of Treasury and Finance Mehmet Şimşek evaluated the results of the November Market Participants Survey announced by the Central Bank of the Republic of Turkey (CBRT) on social media. Şimşek drew attention to the improvement in inflation expectations for the next 12 months and emphasized that the disinflation program is being pursued with patience and determination.
Significant Decline in Inflation Expectations
In his post, Minister Şimşek stated that annual inflation, which realized as 48.6 percent in October, is expected to decline to 27.2 percent after 12 months according to the Market Participants Survey. Şimşek said that this points to a significant improvement in inflation expectations.
Stating that the inflation data of the last two months led to limited increases in certain maturities, Şimşek pointed out that long-term expectations displayed a more favorable outlook. The Minister stated that these data are an important indicator for ensuring economic stability.
“Price Stability Requires Time and Determination”
Şimşek stated that achieving price stability will take time, but that they continue to work with patience and determination to achieve this goal. The Minister used the following expressions:
“We are rigorously implementing our disinflation program. Short-term inflation increases may affect expectations, but we are making significant progress towards a long-term recovery. This process requires patience and determination.”
Impacts of the Economic Program
Şimşek’s statements show the positive effects of the steps taken by the Turkish economy in the fight against inflation. The successful implementation of the disinflation program continues to reassure the markets in the long term. In this process, the Ministry of Treasury and Finance is striving to ensure price stability and sustainable economic growth through various economic reforms.
Roadmap for Fighting Inflation
Economists see Şimşek’s statements as a critical step in managing market expectations. The CBRT’s survey results and the government’s reform efforts show that the Turkish economy is following a clear roadmap in the fight against inflation.
In his social media message, Şimşek stated that it takes time for inflation expectations to fall below a certain level and said, “Although inflation data in the last two months have led to limited increases in the short term, 12-month ahead expectations are improving. This shows that we are on the right track,” he said.
Conclusion
Minister Şimşek’s statements reaffirmed the Turkish economy’s commitment to its long-term stabilization targets. The results of the Market Participants Survey indicate that although the disinflation process is on a favorable track, patience is needed in this process.
