Goldman's year-end inflation forecast for Turkey has been maintained.

Goldman Sachs' Turkey Inflation Report

Goldman Sachs economists Clemens Grafe and Başak Edizgil announced in their report dated January 5 that they have maintained their year-end inflation expectations for Turkey. The report noted, "All our core inflation indicators have significantly weakened in December for the first time since July."

Decrease in Core Inflation

According to the report, the slowdown in inflation during November and December is primarily due to seasonal factors. Goldman economists emphasized that it is still early to say that core inflation has begun to lose the inertia that has persisted since mid-2024, given the uncertainty of seasonality.

Tight Monetary Policy and Inflation Expectations

The economists stated that the slowdown is consistent with a tight monetary and fiscal policy stance, the recent slowdown in the Turkish Lira's (TL) depreciation, and weaker growth momentum. According to data announced on Monday, Turkey's annual inflation has decreased to 30.9%, below the economists' forecast of 31%.

Citigroup's Emphasis

Meanwhile, Citigroup highlighted the stickiness in core and services inflation. These comments are continuing to have a significant impact on the markets concerning Turkey's economic situation.