Minister Şimşek's Assessment on Inflation

Treasury and Finance Minister Mehmet Şimşek made an evaluation on social media regarding the inflation figures for October. Minister Şimşek stated that the annual inflation has entered a declining trend, providing detailed data.

According to the statement, the annual inflation rate in October decreased by 26.9 points compared to May, reaching 48.6%. Şimşek emphasized that this development is a positive advancement and deemed it a significant step towards achieving economic balances.

The inertia in the service sector draws attention. Şimşek mentioned that the annual price increase rate for basic goods is 28.5%, while in the service sector, this rate occurred at 69.8%. He pointed out that the high inflation rate in the service sector is due to past pricing behaviors.

The Minister explained that annual price increases in areas with high backward pricing behavior, such as rent and education, continue to limit the decrease in overall inflation. He indicated that resolving the price rigidity in these areas may take time.

Positive developments in inflation expectations were noted by Mehmet Şimşek, who stated that the 12-month inflation expectations in October have fallen to their lowest level in the past two and a half years, signifying an important indicator for breaking the inertia in service inflation.

The Minister expressed that the positive change in inflation expectations is promising for long-term price stability. Şimşek assessed this situation as a sign that the steps taken in economic policies are beginning to yield positive results.

Şimşek's statements provided significant clues indicating that the economic administration is displaying a determined stance in the fight against inflation. The statements reflect that the efforts to balance the Turkish economy are ongoing.