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.
China’s growing use of electric and hydrogen-powered vehicles took centre stage at the Beijing Auto Show 2026, which opened on 2...
More than 1,000 firefighters are battling to contain two major wildfires in northern Japan for a fourth consecu...
Residents in central Gaza are preparing to vote in municipal elections on Saturday (25 April), marking the first ballot in the Strip since 2006. Th...
Militants have staged coordinated attacks in Mali’s capital, Bamako, and several locations across the country, the army said on Saturday (...
Ukrainian President Volodymyr Zelenskyy is in Azerbaijan for talks with President Ilham Aliyev, holding meetings in G...
China is raising domestic petrol and diesel prices under temporary measures to manage a sharp surge in global oil costs, aiming to support fuel suppliers while maintaining market stability during a period of heightened volatility.
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.
Argentina has reiterated its interest in resuming talks with the United Kingdom over the Falkland Islands, a disputed archipelago in the South Atlantic, after reports that an internal Pentagon email suggested reviewing Washington’s support for the UK’s claim amid tensions over the Iran war.
Diplomatic efforts to end the Iran war are intensifying, with the White House confirming that U.S. President Donald Trump will send special envoy Steve Witkoff and adviser Jared Kushner to Islamabad for talks with Iran under Pakistani mediation.
Russian emergency services have contained a major fire at the Tuapse oil refinery on the Black Sea coast, local officials said on Thursday, ending a four-day effort after a Ukrainian drone strike.
Ukrainian President Volodymyr Zelenskyy is in Azerbaijan for talks with President Ilham Aliyev, holding meetings in Gabala on Saturday (25 April) during a working visit to the country.
Slovenia’s national broadcaster RTV Slovenia has confirmed it will not air the Eurovision Song Contest 2026, joining a widening boycott over Israel’s participation.
The United States has issued an international warning accusing Chinese firms, including AI start-up DeepSeek, of allegedly stealing intellectual property from American artificial intelligence labs.
Meta Platforms will cut about 10% of its global workforce from 20 May, marking the start of a wider restructuring as the company increases spending on artificial intelligence (AI) and plans further layoffs later this year, according to sources familiar with the matter.
President Donald Trump has warned that the U.S. could impose "big" tariffs on British goods if the UK does not remove its digital services tax. Speaking to reporters at the White House on Thursday, Trump said Washington was ready to act in response to the levy on major American technology firms.
China's domestic automakers have a message for the boardrooms of premium German brands such as Porsche, Mercedes-Benz, and BMW: We are coming for your customers, and we are armed with superior technology at a fraction of the cost.
Tim Cook, the tech boss who led Apple to become a $4 trillion company in its post-Steve Jobs era, is stepping down after 15 years in the top job. John Ternus, an Apple veteran of 25 years, who is currently the U.S. company’s Vice President of Hardware Engineering, will take over from September.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment