Minister Şimşek: “We Will Ensure Lasting Price Stability Through Fiscal Discipline and Structural Reforms”

Treasury and Finance Minister Mehmet Şimşek emphasized Türkiye’s commitment to lasting price stability as a foundation for sustainable growth and social welfare. In a statement shared on X, Şimşek underlined that the disinflation process remains on track.

“The disinflation process continues uninterrupted. In August, annual inflation fell below 33%, down by 42.5 points compared to May last year,” he said.

Food Prices Remain Pressured

Despite the overall decline, food inflation continued to weigh on monthly figures.

“Due to frost damage and drought, food prices rose significantly above their long-term average, adding 0.7 points to monthly inflation,” Şimşek explained.

Core Goods and Services Show Improvement

Encouragingly, underlying inflation indicators also trended lower:

• Core goods inflation fell to 19.8%.

• Services inflation dropped to 45.8%, marking its lowest level since April 2022.

“The decline in annual core goods and services inflation continued in August,” Şimşek noted, pointing to progress in the government’s stabilization efforts.

Policy Commitment

Looking ahead, Şimşek reaffirmed Ankara’s determination to pair fiscal discipline with structural reforms to ensure durable disinflation:

“To achieve lasting price stability, which is a prerequisite for sustainable growth and rising social welfare, we will continue fiscal discipline and structural steps with the same determination.”

Broader Economic Implications

The minister’s remarks come as Türkiye seeks to rebuild investor confidence while navigating fragile growth, high borrowing costs, and structural weaknesses. Economists view the recent slowdown in services inflation as a positive sign, though food and energy prices remain vulnerable to climate and global commodity shocks.