Lightning: The Decline of Inflation Expectations Across All Sectors is Crucial for Breaking the Stagnation in Service Inflation

Forex - The Minister of Treasury and Finance, Mehmet Şimşek, stated, "The decline of 12-month inflation expectations to the lowest levels in the last two and a half years across all sectors in October is important for breaking the inertia in service inflation." Evaluating inflation data on X, Minister Şimşek said: "In October, annual inflation decreased by 26.9 points compared to May, reaching 48.6%. The annual price increase in basic goods was 28.5%, while it was 69.8% in services where inertia is high. Particularly, the annual increases in rent and education categories, where backward pricing behavior is significantly high, are limiting the decrease in inflation. Eliminating rigidities takes time, but developments in this regard are positive. The decline of 12-month inflation expectations to the lowest levels across all sectors in October is significant for breaking the inertia in service inflation."