MNI BRIEF: CBRT Sees Inflation At 24% This Year

Turkish inflation will end 2025 at 24% and be 12% next year, the Central Bank of the Republic of Turkey said in May's Inflation Report, with lower crude oil and import prices offsetting dearer food. 

The CBRT left ranges for 2025 and 2026 unchanged, at 19-29% and 6-18%. "In forecast revisions for 2025, the upside and downside effects counterbalanced each other," Governor Fatih Karhan said in a speech. The central bank will maintain "decisively" its tight monetary policy stance until a "permanent decline” in inflation.

"As expectations return to a downward trend and the fall in services inflation is sustained, the decline in the underlying inflation will continue in the remainder of 2025. Increased coordination among monetary and fiscal policies will also contribute to this process."

Inflation decreased to 37.9% in April, according to official figures, while the CBRT's Sectoral Inflation Expectations survey set household’s 12-month expectations at 59.3%. By contrast a Koc University survey published on Wednesday showed households’ year-end inflation expectations steady at 69%.