The decrease in inflation expectations among participants in the real sector and financial markets continues. This was stated by the Minister of Treasury and Finance of Turkey Mehmet Shimshka.
The minister emphasized that the reduction in the gap between the expectations of households and market players to a minimum over the past six years is a significant achievement in the fight against inflationary inertia.
In the publication in his social networks, Shimshka commented on the report of the Central Bank of Turkey (TCMB) on “sector inflation expectations” for June.
According to him, in June, inflationary expectations decreased in all segments. Thus, the expectations of households in terms of inflation for the next 12 months were reduced by 7 % of points compared to the previous month and by 19 points – compared to the same period last year.
“Reducing the difference between the expectations of households and market participants to the minimum level over the past six years is an important indicator of overcoming inflational inertia. Improving expectations confirms that the program we implemented is progressing consistently and effectively,” Shimshka said.
According to him, a decrease in geopolitical tension leads to a reduced oil.
“As the inflation is further reduced, the internal financial conditions will become more favorable for the real sector,” he summed up.