- BIST10012,151-0.94%
- USD49.34+0.24%
- EUR55.21-0.01%
- GOLD4,186.40-0.10%
- INTEREST37.00%-1.00
- BITCOIN81,358-0.48%
- October 13, 202617°
- BIST10012,151-0.94%
- USD49.34+0.24%
- EUR55.21-0.01%
- GOLD4,186.40-0.10%
- INTEREST37.00%-1.00
- BITCOIN81,358-0.48%
- October 13, 202617°
Minister Şimşek says inflation has resumed its decline after a temporary disruption
Minister of Treasury and Finance Mehmet Şimşek announced that inflation has re-entered a downward trend after a temporary disruption caused by supply shocks. In June, monthly inflation came in at 0.99 percent while annual inflation fell to 32.1 percent.
Minister of Treasury and Finance Mehmet Şimşek announced that inflation has re-entered a downward trend after a brief pause linked to global supply shocks.
In a post on his social media account, Şimşek noted that monthly inflation in June was 0.99 percent, remaining below 1 percent, while annual inflation fell to 32.1 percent from 32.6 percent in May, a decline of 0.5 percentage points.
Global energy prices and oil spike
The minister stated that this temporary disruption in inflation was caused by rising global energy prices due to supply shocks. With the start of the war waged by the US and Israel against Iran at the end of February, supply disruptions in the Strait of Hormuz, one of the world's most critical energy transit points, pushed oil prices sharply higher. The price of Brent crude per barrel exceeded $120 during the war period, but by early July it had fallen back to $71-72 levels, approaching pre-war levels, thanks to the announcement of a temporary memorandum of understanding between Washington and Tehran in June and subsequent progress in talks in Qatar to make the ceasefire permanent.
Commenting on the disinflation process, Şimşek said: "We expect the decline in inflation to continue for the rest of the year, thanks to global commodity prices returning to normal levels, the activation of regulated pricing mechanisms, the downward trend in rent inflation, and the moderation in demand."
The minister emphasized that the government is resolutely continuing its policies to ensure price stability, and said the main goal is to improve citizens' purchasing power and bolster market confidence.
Stay Updated with The Turkiye Times
Subscribe to be informed about special news, developments and announcements. We will keep you informed.
By signing up, you agree to our Privacy Policy
