Inflation expectations drop, boosting economic outlook
ANKARA
Inflation expectations for the next 12 months fell across all sectors in June, with market participants, businesses and households anticipating lower rates, signaling growing confidence in Türkiye’s economic policies, according to Finance Minister Mehmet Şimşek.
Central Bank released its June 2025 inflation expectations report, showing a 12-month inflation forecast of 24.6 percent for market participants, down 0.5 points, 39.8 percent for the real sector, down 1.2 points, and 53 percent for households, a sharp 6.9-point decline.
The share of households expecting inflation to decrease over the next year rose 2.9 points to 30.7 percent, reflecting improved public sentiment, the report noted.
Şimşek hailed the narrowing gap between household and market expectations, which reached its lowest level in nearly six years.
“This is a significant step in breaking inflation inertia,” he said in a post on X.
Şimşek highlighted the broader decline in expectations, noting that household forecasts dropped 7 points from May and 19 points from June 2024.
“The consistent drop in expectations across all sectors shows our program is advancing effectively toward its goals,” he added.
Falling oil prices, driven by easing geopolitical tensions, will further support disinflation, Şimşek said.
He predicted that declining inflation would create more favorable financial conditions for businesses, bolstering Türkiye’s economic recovery.
