The CBRT adjusted its December inflation forecast downward.

Unexpected Decrease Indications in December Inflation from TCMB

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

Positive Trend in Food Prices Continues

The meeting summary indicates that leading data suggest the positive trend observed in food prices in November is expected to continue in December. It was noted that while prices for fresh fruits and vegetables in the unprocessed food segment are declining, 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 remained relatively stable due to corrections in fuel prices.

Expectations for Decrease in Core Goods and Service Prices

The summary stated, "Leading indicators imply more moderate price increases in the groups of core goods and services compared to the previous month in December. It is also expected that the main trend indicators will continue their downward trend in December."