Turkish Central Bank expects year-end annual inflation to be in 15%-21% range

By Mucahithan Avcioglu

ISTANBUL (AA) - The Turkish Central Bank on Thursday forecast that the country’s year-end inflation would be in the 15%-21% range

The bank's interim inflation targets were maintained at 16% and 9% for 2026 and 2027, respectively, Governor Fatih Karan told a press conference in Istanbul.

"We set our interim target for 2028 at 8%," he said.

The bank targets inflation to fall to 8% in 2028 and stabilize at 5% in the medium term.

"We have always reiterated that during the disinflation process, we will maintain our tight monetary policy stance to achieve our interim targets," Karan noted.

He added that the cautious tight monetary policy stance, which will be maintained until price stability is achieved, will strengthen the disinflation process through demand, exchange rate, and expectation channels.

Türkiye's annual inflation rate in January eased to 30.65%, its fourth consecutive monthly decline, and its lowest level since November 2021.

In its previous inflation report, the bank projected that inflation at the end of 2026 would be in the 13%-19% range.