The Central Bank of the Republic of Turkey Adjusted Its December Inflation Forecast Downward.

Unexpected Decline Signals in December Inflation from TCMB

The Central Bank of the Republic of Turkey (TCMB) shared the summary of the Monetary Policy Committee (PPK) meeting held on December 11, 2023, with the public. During the meeting, a reduction of 150 basis points in the policy rate was decided.

Positive Trend in Food Prices Continues

The meeting summary indicated that leading indicators expect the positive trend observed in food prices in November to continue into December. It was noted that while fresh fruit and vegetable prices are decreasing on the unprocessed food side, the increase in red meat prices partially limits this positive situation.

Developments in Processed Food and Energy Prices

It was emphasized that the gradual slowdown trend in processed food inflation continues, and that energy prices have shown a relatively flat trend due to corrections in fuel prices.

Expectations for Decline in Basic Goods and Services Prices

The summary stated, "Leading indicators imply more moderate price increases in basic goods and services groups in December compared to the previous month. It is expected that the main trend indicators will continue to show a downward trend in December as well."