05.05.2025 12:41
After TÜİK announced the monthly inflation rate as 3 percent, Minister of Treasury and Finance Mehmet Şimşek stated, "We see a very high probability that this year's inflation will remain within the range of 19-29 percent, which is the target estimate of our Central Bank."
TUIK announced the inflation data for the period of April 2025. Accordingly, consumer prices increased by 3% compared to the previous month, 13.36% compared to December of the previous year, 37.86% compared to the same month of the previous year, and 48.73% according to 12-month averages. Following the announcement of the inflation data, Minister Şimşek also made a statement.
HE SAID INFLATION WILL STAY BETWEEN 19-29%
Minister of Treasury and Finance Şimşek commented on the inflation figures to TGRT News. In his statement, Şimşek said, "This year, we see a very high probability that inflation will remain within the range of 19-29%, which is the target estimate of our Central Bank. We have prioritized the Central Bank's target for inflation. Our only agenda is to fight against the cost of living." Minister Şimşek continued his statement: "Fighting against the cost of living is our most important agenda. Our goal is to bring inflation down in a planned manner. When we started this program, we had envisioned a one-year plan. This also included the reconstruction of monetary policy. Annual inflation is trending downwards. Despite the recent internal and external shocks, it is positive that this decline continues. We expect inflation to continue to decrease in the upcoming period."
"OUR TARGET THIS YEAR IS TWENTY-ISH NUMBERS"
The first reason for this is that the delayed effect of monetary policy is now starting to be seen clearly. This year, both fiscal policy and income policy will be framed more realistically. Our supply-side developments are also ongoing. We are supporting the process not only with monetary and fiscal policies but also with supply-side disinflationary efforts. Last year, inflation fell to around 44%. Our target for this year is "twenty-ish numbers." Our forecast range is between 19 and 29. We believe we will reach this target. Currently, annual inflation is around 37.9%. Inflation in basic goods has decreased significantly. Food inflation is around 36%. When we look at commodity inflation, we have fallen to around 31%.
"THE MAIN FACTOR KEEPING INFLATION HIGH IS SERVICE INFLATION"
Especially rent and education items are pushing this area upwards. This year, service inflation is below 90%. We expect normalization after July. We predict that annual inflation will fall below 30% by the end of the year. Monetary policy is tight, and income policy provides supply-side support. Compared to 2023, we expect a significant increase in housing supply by the end of this year. We have activated important resources for earthquake housing, on-site transformation, and urban transformation. We are also adhering to the Central Bank's original targets for administered prices. We have set prices below the target in many areas. We expect inflation to decrease in these items as well. Despite the recent shocks both domestically and internationally, we have prioritized the inflation program. Because our most important issue is to fight against the cost of living. We are determined in this regard. The first year was a transition period, and this year we are starting to see results. We expect stronger results next year.
"INFLATION IS ON A DOWNWARD TREND"
Constructive criticism is very valuable to us. However, there is a serious polarization in society, and evaluations are sometimes made from a political perspective. In this context, there is not much to say. The goal of the program was to reduce inflation, and this has started to happen. There are no miracles in real life. A program that produces consistent results needs to be implemented. Is the result coming? Yes, inflation is on a downward trend. Our second goal was to bring the current account deficit onto a sustainable path, and we have achieved that. There have also been positive developments regarding access to external resources. We had a target to exit from the Currency Protected Deposit, and there is a decrease in that stock as well. There is progress in all these areas, and results are being achieved. Of course, are we progressing at the desired speed? That is debatable. We take constructive criticisms into account and evaluate them as guiding. However, we have nothing to say to those who spread pessimism.
"INFLATION WILL STAY WITHIN THE FORECAST RANGE"
We believe that inflation will remain within the Central Bank's forecast range. These evaluations are made considering the latest developments. Of course, there are factors that push inflation upwards, but the general trend is downward.