Turkish Finance Minister Mehmet Simsek on Thursday outlined a positive outlook for inflation, predicting a continued decline in the second half of the year.

In a statement on X, Simsek attributed the trend to declining commodity prices, reduced financial market volatility, improving inflation expectations, and supportive demand conditions.

Simsek reported that monthly inflation in June stood at 1.37% despite rising oil prices driven by geopolitical tensions. Annual inflation dropped to 35% in June, with a notable decline in services inflation—where inertia is typically high—to 50% after three years, signaling ongoing disinflation. He emphasized that the government’s commitment to the disinflation process is reflected in both data and public expectations.

The minister reassured citizens, noting a significant slowdown in inflation across multiple sectors, including food, durable consumer goods, education, transportation, and more. "Our citizens should rest assured; a significant slowdown in inflation has begun and this trend will continue," Simsek stated.

The update, initially reported by Refinitiv at 11:53 GMT+3, underscores Turkey’s efforts to stabilize its economy amid global challenges. (ILKHA)