Türkiye Revises Up Inflation Forecasts for 2024, 2025

"We have revised our inflation estimates upward to 44 percent for 2024 and 21 percent for 2025. Looking further ahead, we expect the inflation to decrease to 12 percent by the end of 2026," said Central Bank Governor Fatih Karahan when presenting the fourth-quarter inflation report.

"Our disinflation process continues. Macroeconomic indicators are also in line with this process. We assess that domestic demand continues to decline and reaches levels that support disinflation. In accordance with this slowdown, the current account deficit continues to decline," he added.

The central bank attributes the revised forecasts to various economic pressures and maintains that its cautious monetary policy will help curb inflation.

Türkiye has been grappling with high inflation amidst one of the worst cost-of-living crises in its history.

Since June 2023, the country has tightened its monetary policy significantly, with the central bank raising the key interest rate from 8.5 percent to 50 percent. The interest rate has been kept unchanged since March this year to allow the tightening to have an impact.

According to official data, Türkiye's annual inflation rate eased to 48.58 percent in October, maintaining below 50 percent for the second consecutive month.

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