Turkey sees falling inflation expectations as investment appetite weakens

Finance Minister Mehmet Şimşek said household inflation expectations fell by 6.6 points and the real sector's expectations dropped by 1.2 points over the past three months, signalling improving confidence in the economy despite global uncertainties. He stressed that policy aims at high‑value production and lasting welfare gains.

Business commentator Metin Atan warned that citizens feel squeezed by rising prices and that recent wage hikes have lost impact, calling for long‑term, trust‑building economic policies. He highlighted growing public demand for stable, credible governance.

The Turkish Business Association (MESİAD) reported a weakening investment appetite among manufacturers, with many small and medium enterprises struggling with cash‑flow shortages and costly credit. It urged banks to lower interest rates and expand affordable financing to revive production and employment.