Şimşek: Inflation will decrease in 2024

ISTANBUL

Treasury and Finance Minister Mehmet Şimşek has said in a New Year's message that the positive results of the government's economic program will be achieved in 2024.

“2024 will be a year in which annual inflation will begin to decline, reserve adequacy will continue to increase, the exchange rate hedging system will end, the current account deficit will begin to improve on a sustained basis, fiscal discipline will be established and the foundations for sustained high growth will be strengthened,” Şimşek yesterday wrote on social media site X, formerly known as Twitter.

“We will continue to reap the positive results of our program in the new year, the minister added.

“We will continue to implement our program with determination for a more prosperous Turkey. I congratulate you on the New Year and wish you health, peace and happiness, hoping that it will be a year in which we look to the future with confidence.”

Monthly inflation will rise in January due to wage adjustments, particularly the minimum wage, and items with a high tendency for time-dependent price setting, the Central Bank said last week.

The minimum wage this week was increased by 49 percent to 17,002 Turkish Liras ($578) for millions of workers.

“This rise in monthly inflation is expected to slow down in February and beyond, and hover close to the decline in the underlying trend of inflation in the first half of the year,” the bank said in the summary of the November Monetary Policy Committee Meeting released on Dec. 28.

Although the rebalancing that started with the monetary tightening process continues, demand conditions may not weaken due to wage hikes in January, said the bank, warning that the current level of demand continues to be considered a risk factor in inflation.