Yılmaz: We Are Determined to Advance Social Welfare, Enhance Economic Predictability, and Ensure a Fairer Distribution of Resources Through Our Economic Program

Forex - Vice President Cevdet Yılmaz stated, "We are steadfastly continuing our economic program to advance social welfare, increase predictability in the economy, and ensure a fair and efficient distribution of resources." In a statement made on X regarding the inflation figures announced today, Yılmaz said: "As a result of the confidence in our program, we continue to establish the disinflation process. The monthly increase in consumer prices was recorded at 1.03% in December. Thanks to the policies we have implemented, the year-end inflation for 2024 is expected to be 20.4 points lower than last year, at a level of 44.4%. Since we initiated the disinflation process in June 2024, the annual inflation has decreased by 31.1 points. The improvement in service inflation, where backward pricing was high, became evident in the last quarter. The decline in the main trend of inflation continued in December.

We observe a clear improvement in firms' pricing behavior. The monthly increase in domestic producer prices in December was 0.4%, leading the annual inflation of producer prices to decrease by 29.2 points since we started the disinflation process and by 15.7 points compared to last year, settling at 28.5% by the end of 2024. The moderate trend in domestic producer prices continues to alleviate the cost pressure on consumer prices, significantly weakening price increases in basic goods.

During the disinflation process, where we aim for balance in domestic demand, the demand conditions have reached supportive levels for the decline in inflation. The trajectory of inflation expectations is crucial for the pace of disinflation. With the policies we will implement in the upcoming period, we aim to accelerate the improvement in inflation expectations, further strengthening the disinflation process.

We are steadfastly continuing our economic program to advance social welfare, increase predictability in the economy, and ensure a fair and efficient distribution of resources. We aim to bring inflation down to single-digit levels during the program period, ensuring stability at these levels through our transparent and predictable policy steps that provide strong coordination between monetary and fiscal policies. Our main goal in an environment where inflation decreases and stability consolidates is to achieve inclusive growth and sustainable social welfare."