Vice President Cevdet Yılmaz shared his assessment of the August inflation data on his NSocial account.
Yılmaz stated that the fight against inflation is being maintained through a comprehensive approach and strong coordination among relevant institutions. He said that consumer inflation stood at 1.84% in August, while annual consumer inflation declined to 31.51%.
According to Yılmaz, annual inflation in core goods fell to 15.89%. A notable slowdown was also observed in food prices in August. Driven particularly by declines in fresh fruit and vegetable prices, monthly food inflation stood at 0.22%, while annual food inflation decreased by 3.7 percentage points from the previous month.
Seasonal discounts supported improvement in clothing and footwear
Commenting on price developments in the core goods group, Yılmaz said that ongoing seasonal discounts in the clothing and footwear sectors contributed to the improvement in both monthly and annual inflation.
Yılmaz noted that annual services inflation remained broadly flat. On a monthly basis, however, higher transportation costs driven by global developments, along with seasonal price changes in rent and education, stood out.
Global risks remain closely monitored
Yılmaz highlighted that sharp fluctuations in energy and commodity prices, geopolitical developments, changes in global trade and protectionist policies are affecting the global inflation outlook. He stated that Türkiye continues to take steps to strengthen its resilience against external price pressures.
Yılmaz said the impact of geopolitical developments on prices is being closely monitored, while policies aimed at limiting the pass-through of external shocks to domestic prices are being prioritized in coordination with relevant institutions.
He also stated that efforts to increase supply capacity and efficiency are being strengthened in areas such as rent, food, energy and transportation, which have a direct impact on citizens’ daily living costs. He added that social housing projects targeting low- and middle-income citizens are continuing.
Yılmaz further stated that urban transformation projects would continue to be supported in order to reduce disaster risks and increase the supply of safe housing.
Target is lasting price stability
Yılmaz said the goal for the period ahead is to make the disinflation process lasting, supported by normalization in global prices as well as supply-side policies. He emphasized that achieving sustainable price stability remains one of the key priorities.
Yılmaz stated that price stability would increase predictability in the economy, contribute to lasting improvements in welfare and allow economic gains to be distributed more evenly across different segments of society.
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