(MENAFN) Türkiye's Treasury and Finance Minister, Mehmet Şimşek, reported on Friday that inflation expectations for the next 12 and 24 months have shown a marked improvement over the past ten months. This positive development follows the release of the Turkish Central Bank’s August survey of market participants. Şimşek noted that while a temporary increase in monthly inflation for July led to a minor rise in year-end expectations, the outlook remains generally favorable. Specifically, the inflation expectation for the next 12 months has decreased to 28.7 percent, while the expectation for the next 24 months stands at 19.3 percent.

This update comes in the context of recent inflation data from the Turkish Statistical Institute, which indicates that Türkiye's annual consumer inflation rate fell to a nine-month low of 61.78 percent in July, down from 71.60 percent in June. On a monthly basis, the Consumer Price Index increased by 3.23 percent in July, compared to a rise of 1.64 percent in June. Despite this monthly uptick, the overall trend reflects a significant cooling of inflationary pressures.

Şimşek expressed optimism regarding future inflation trends, anticipating that annual inflation will see a substantial decline in August and continue to ease throughout the rest of the year. He emphasized that the improvements in inflation expectations and the expected reduction in inflation rates are indicative of the effectiveness of the economic measures being implemented by the Turkish Central Bank and the government. This optimistic outlook suggests that Türkiye is making progress in stabilizing its inflationary environment and managing economic pressures.

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