Minister Şimşek: Disinflation Has Begun and Will Continue Through Second Half

Treasury and Finance Minister Mehmet Şimşek announced that Türkiye has entered a clear disinflation phase, with June data indicating continued progress despite geopolitical pressures on oil prices. Sharing his assessment on social platform X, Şimşek pointed to several economic signals supporting a further decline in inflation through the second half of 2025.

June Inflation at 1.37% Monthly, Annual Rate Falls to 35%

“In June, monthly inflation stood at 1.37%, despite rising oil prices due to geopolitical tensions,” Şimşek stated. He noted that annual inflation fell to 35%, down from 35.41% the previous month, while services inflation, often driven by wage inertia and long-term contracts, declined to 50%—its lowest level in three years.

Disinflation Trend Confirmed by Data and Expectations

Şimşek emphasized that the ongoing disinflation process is evident both in actual figures and market expectations. He attributed this to a favorable combination of:

• Falling global commodity prices

• Lower financial market volatility

• Improved inflation expectations

• Supportive demand dynamics

“Citizens Should Be Assured” — Broad-Based Price Relief Underway

Şimşek assured the public that the slowdown in inflation is already being felt across key sectors: “From food and consumer durables to education and transportation, the slowdown has begun and will continue,” he said. The minister reiterated the government’s commitment to disinflation, indicating confidence in the trajectory for the remainder of 2025.