Public’s inflation concerns ignored by Şimşek

Treasury and Finance Minister Mehmet Şimşek painted an optimistic picture in the July 2025 Sectoral Inflation Expectations Report, ignoring the public’s growing concern over inflation. Yet data from the Central Bank of Türkiye (TCMB) shows a clear decline in the number of households who believe inflation will fall.

RISING PUBLIC DISSATISFACTION WITH INFLATION IGNORED

In a statement shared on social media, Şimşek avoided mentioning the TCMB data showing that public inflation expectations rose by 1.5 points in July to reach 54.5 percent. Instead, he said, “As we decisively implement our comprehensive policies, we are making steady progress towards permanent price stability and sustainable growth.” He claimed that while inflation expectations continued to decline among market participants and the real sector compared to the previous month, household expectations rose. “Twelve-month inflation expectations among market participants fell to 23.4 percent, the lowest level in 43 months. Compared to the same period last year, expectations among the real sector and households declined by 16 and 17.5 points respectively,” he added.

WHAT DOES THE TCMB DATA SHOW?

Another key figure in the TCMB report is that the proportion of households expecting inflation to fall in the next 12 months dropped to 26.6 percent. This figure was 30.7 percent in June 2025, indicating a 4.1-point decrease in July. The data signals a decline in public confidence in price stability.

Source: Halkın enflasyon endişesi Şimşek'in gündemine giremedi