Türkiye’s Central Bank on Friday raised its year-end inflation forecast for 2025 while keeping it unchanged for 2026.
Annual consumer inflation is expected to reach 24% this year, up 3 percentage points from the previous forecast, Governor Fatih Karahan told a meeting held to release the bank’s first inflation report of this year.
"The forecast revision for 2025 was driven by factors that are relatively beyond the control of monetary policy," Karahan said.
The leading factors were a higher weight for the services group in the Consumer Prices Index (CPI) basket, the update in food inflation due to the unprocessed food and the increase in co-payment by patients’ shares in medical examinations, he explained.
Despite the revision, the governor highlighted that this adjustment does not indicate any easing of its monetary policy stance.
"Hence, we kept our 2026 forecast unchanged within a context where the probable secondary effects of the revision in our 2025 forecast through expectations will be offset by the tight monetary stance," he said.
The forecast for 2026 was kept unchanged at 12%, Karahan said, adding: "We forecast inflation will ease to 8% by 2027,” with the long-term goal being to stabilize inflation at 5%.
The governor reaffirmed the Central Bank’s commitment to its disinflation strategy, highlighting measures such as maintaining tight financial conditions, encouraging moderation in domestic demand, and fostering the real appreciation of the Turkish lira.
According to recent data from TurkStat, Türkiye's annual inflation rate dropped to a 19-month low of 42.12% in January with the disinflation process started last January.
Karahan also underlined the importance of policy coordination, saying: "The decline in the underlying inflation will continue in 2025 as the stickiness in services inflation weakens and the improvement in inflation expectations become more pronounced. The coordination between monetary and fiscal policies will contribute to the disinflation process as well."
The Central Bank vowed to maintain its tight monetary policy stance until a sustained decline in inflation is achieved, ensuring price stability over the long term.
The U.S. Department of Justice on Friday made public more than three million pages of documents on Jeffrey Epstein, the late financier and convicted s...
Israel has reopened Gaza’s Rafah border crossing with Egypt in what Israeli media described as a “pilot operation,” marking the first opening of...
Iran’s Supreme Leader Ayatollah Ali Khamenei has warned that any U.S. military attack on Iran would spark a wider regional conflict, Iranian semi-of...
Iran will treat the armies of European Union member states as “terrorist groups” in retaliation for the EU’s decision to list Iran’s Islamic R...
Russian Security Council Secretary Sergei Shoigu has arrived in China for an official visit, where he is due to meet Chinese Foreign Minister Wang Yi ...
In late December 2025, protests erupted across Iran after the rial collapsed and inflation soared. Unrest spread from Tehran’s Grand Bazaar as citizens expressed frustration over rising prices, economic hardship, and long‑standing grievances with government policies.
U.S. President Donald Trump delivered a wide-ranging address from the White House in which he sought to highlight what he described as his administration’s achievements while laying the groundwork for his plans for the year ahead and beyond, on Wednesday (18 December).
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75% following its two-day policy meeting, according to an official statement issued on Wednesday, 10 December.
New Zealand's annual inflation accelerated in the third quarter, reaching 3.0%, which aligns with analysts' expectations and is at the upper end of the central bank's target range, according to official data released on Monday.
Catherine O’Hara, the celebrated Canadian actress and comedy legend, has died at the age of 71, her publicist confirmed on Friday. She passed away at her home in Los Angeles following a brief illness.
The U.S. Department of Justice on Friday made public more than three million pages of documents on Jeffrey Epstein, the late financier and convicted sex offender, including investigative records referencing Donald Trump, tech mogul Elon Musk and Britain’s former Duke of York, Prince Andrew.
The United Nations faces the risk of “imminent financial collapse” because of unpaid contributions, including substantial arrears from the United States, Secretary-General Antonio Guterres has warned.
Vladimir Putin said Russia earned more than $15 billion from defence exports in 2025 and fulfilled all military-technical contracts despite what he described as growing pressure from Western countries.
Explosions shook parts of southern Lebanon on Friday night as Israeli strikes rippled across the Zahrani district, with the blasts travelling toward the coastal city of Sidon.
U.S. stock markets finished mixed on Wednesday (28 January) as investors reacted calmly after the Federal Reserve left interest rates unchanged, a decision that had been widely expected and largely priced in.
The S&P 500 edged to a record closing high on Tuesday, marking its fifth consecutive day of gains, as strong advances in technology stocks offset a sharp selloff in healthcare shares and a mixed batch of corporate earnings.
Chevron is in talks with Iraq’s oil ministry over potential changes to the commercial framework governing the West Qurna 2 oilfield, one of the world’s largest producing assets, after Baghdad nationalised the field earlier this month following U.S. sanctions imposed on Russia’s Lukoil.
Argentina's economic activity shrunk 0.3% in November compared with the same month last year, marking the first monthly contraction of 2025, data from Argentina's national statistics agency showed on Wednesday.
Wall Street closed sharply lower on Tuesday as global markets fell after U.S. President Donald Trump’s new tariff threats against Europe unsettled investors and revived fears of renewed volatility.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment