Central Bank's Inflation Forecast: What Will the Pension Increase Be?

The President of the Central Bank of the Republic of Turkey (CBRT) Fatih Karahan has updated the inflation forecasts for 2025. In the information meeting of the fourth inflation report for 2025, it was stated that the central bank's estimates have undergone significant revisions compared to previous reports.

This update regarding inflation rates, which directly affect the course of the economy, plays a determining role in the raises that retirees will receive. According to the CBRT's new forecasts, the expected inflation level by the end of 2025 has been raised from the 25-29 percent range to the 31-33 percent range, providing important clues about what to expect for pension increases in the upcoming period.

This significant change has become a major topic of interest due to its potential impact on the raise rates for retirees. As inflation rates are a key determinant in calculating pension amounts in Turkey, the CBRT's updated estimates have drawn the attention of the public.

The increasing inflation pressures in the country are critically important for retirees to maintain their living standards. The government’s planned increases for retirees will also need reassessment in light of these new forecasts. In this context, the upcoming collective bargaining negotiations and budget planning will be crucial in shaping the pension increases.

As a result, the upward revision of the CBRT's inflation forecast for the end of 2025 could not only affect pension increases but also impact the overall health of the economy and investor confidence. Careful monitoring of economic data emerges as a crucial issue that closely concerns both retirees and the general public's living standards during this process.