The Central Bank of the Republic of Turkey Raised Its Inflation Forecast for 2025.

TCMB Announced the Inflation Report

The President of the Central Bank of the Republic of Turkey (TCMB), Fatih Karahan, announced the last inflation report of the year. According to the latest assessments for 2025, the inflation forecast range has increased from 25-29% to 31-33%. This situation is being closely monitored by investors and market analysts.

2026 Forecasts Remain Stable

The inflation forecast range for 2026 has been maintained at 13-19%. The TCMB has retained the interim target of 24% for 2025, while it projected 16% and 9% for 2026 and 2027, respectively. President Karahan stated that the year-end inflation target for 2025 is set at 32%.

Tight Monetary Policy Will Be Maintained

Karahan conveyed that the tight stance in monetary policy will continue "as long as necessary." Demand conditions in the third quarter were following a disinflationary track, and this outlook is expected to be maintained for the remainder of the year. The economic management noted that the harmony between the current account deficit and domestic demand must be sustained.

Signs of Slowing Non-Food Inflation

Karahan stated that there are signs of a slowdown in inflation concerning non-food consumer prices. However, the monthly averages observed are above the forecasts. Additionally, it was noted that the decline in inflation expectations for October has been interrupted.

Effects on Service Inflation

The President emphasized that the rigidity in service inflation is high. Price determination based on time for items such as education and rent continuously exerts pressure on service inflation. The TCMB is committed to maintaining the downward trend in the primary trend of service inflation.

These statements provide valuable information to investors about the economic outlook and market dynamics. However, it should be noted that the information contained herein does not constitute investment advice.