Finance and Treasury Minister Mehmet Şimşek said inflation expectations among the real sector and market participants continued to decline, calling the narrowing gap between household and market expectations “an important development” for breaking inflation inertia.
In a social media post on Tuesday, Şimşek evaluated the Central Bank of the Republic of Türkiye’s (CBRT) June 2025 “Sectoral Inflation Expectations” report.
He noted that inflation expectations decreased across all segments in June, with households’ 12-month inflation expectation dropping by 7 percentage points compared to last month and 19 points compared to the same period last year.
“The gap between household and market expectations has fallen to its lowest level in about six years, which is significant for breaking inflation inertia,” Şimşek said. “This improvement in expectations shows that the program we are implementing is progressing toward its goal with effective and decisive steps.”
He added that easing geopolitical tensions have led to lower oil prices, and that a continued decline in inflation would create more supportive domestic financial conditions for the real sector.
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