Treasury and Finance Minister: "We are in the process of transition"

Treasury and Finance Minister: "We are in the process of transition"
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Finance Minister Simsek says Turkey is in a 'transition process,' implying abandoning the so-called 'new economic model.'

Inflation rose 9.49 percent month-on-month and 47.83 percent year-on-year in July, according to official data from the Turkish Statistical Institute today.

Commenting on the inflation data after TurkStat's report, Treasury and Finance Minister Mehmet Simsek said, "We are in the process of transition," implying that the "new economy model" frequently advocated by former ministers Berat Albayrak and Nureddin Nebati has been abandoned.

Commenting on the high inflation rate in July, Simsek said, "Inflation reached 47.8 percent annually in July, in line with market expectations, due to fiscal measures, exchange rate developments, and wage increases."


Simsek shared the following post on his social media account, conveying the message that the decline in inflation will only start next summer.

The Minister added that, "We are in a transition period where disinflation and price stability are targeted. With the positive impact of the monetary policy stance, annual inflation will start to decline from mid-2024. We will support the disinflation process with fiscal discipline. Our policy's main objective is to reduce inflation to single digits in the medium term permanently".