Treasury and Finance Minister Mehmet Şimşek stated that annual inflation had fallen below 30% after 57 months (November 2021). In September, food inflation declined to 27.6%, education inflation to 48.6%, and rent inflation to 41.3%.
Şimşek announced that the gradual phaseout of the sliding-scale system for gasoline had also begun in order to limit the impact of rising oil prices. According to the Central Bank’s calculation, inflation would have been 7 percentage points lower this year if there had been no war. The minister said that the decline in services inflation, particularly in rents and education, is expected to continue in 2027.
Why it matters
Although the decline in inflation indicates that the pace of overall price increases has slowed, rent and education, among other services, continue to be decisive for household budgets. The decline in food inflation is important for those seeking to track the pressure on essential consumer spending, while the high rates for rents and education show that experiences may differ across income groups. The gradual phaseout of the sliding-scale system for gasoline raises the question of how rising oil prices will be reflected in consumer prices. The calculation concerning the impact of the war on inflation also shows that external developments, alongside domestic policies, are shaping the price outlook; the open question is whether the decline in services inflation will continue in line with the 2027 forecast.
Background
The minister is not a new name in the FikirPilot archive: we have published 14 news reports mentioning this name in the past 90 days; the most recent is dated 2 October 2026.
Term: inflation
Inflation is the continuous increase in the general level of prices and the decline in the purchasing power of money.