Trade Minister Ömer Bolat: "Inflation Decline Will Continue in 2025"

Minister of Trade Ömer Bolat emphasized the positive effects of Turkey's economic program on inflation in a statement made on his social media account. Bolat noted that inflation has started to decline rapidly from the second half of 2024, and he expressed that this decrease will continue into 2025.

Minister Bolat announced that as of December 2024, the annual inflation rate had fallen to 44.4%, marking the lowest level in the last 1.5 years. He pointed out that inflation has decreased by 31.1 points in the last 7 months compared to May 2024, stating that the monthly inflation increase of 1.03% is the lowest in the last 19 months.

A record low increase in core inflation over 40 months was reported. It was mentioned that excluding volatile items such as energy, food, tobacco products, and gold, core inflation increased by 1.06% on a monthly basis in December, which is the lowest increase in 40 months, indicating that rigidity in inflation is weakening.

In terms of service inflation, a monthly increase of 1.05% was observed, but it was noted that declines in the last quarter have started to break the inertia in this area. Minister Bolat stated that they anticipate this positive trend in inflation will continue in the coming months.

Bolat highlighted that the policies implemented by the ministry have strengthened macro-financial stability by reducing the foreign trade deficit and the current account deficit, contributing positively to the decline in inflation. Additionally, he indicated that efforts to combat exorbitant price increases in domestic trade will continue.

Bolat expressed that inspections against those who turn to price increases that cannot be explained by economic fundamentals and disrupt fair competition conditions to the detriment of consumers will continue with determination. It was stated that structural policies would be prioritized in collaboration with relevant ministries to support the disinflation process in 2025.

As of December, the CPI recorded a monthly increase of 1.03%, while annual inflation decreased to 44.4%, marking the lowest level in the last 1.5 years. This situation indicates that inflation is on a downward trend, with the monthly increase rate being the lowest in the last 19 months.

Minister Bolat stated that the policies implemented to further reduce inflation will continue steadfastly. It was noted that structural reforms would accelerate in 2025 to support the disinflation process.