Annual inflation to hit 20 pct range by early 2026, says Şimşek

ISTANBUL

Türkiye's annual inflation is expected to drop to the 20 percent range by February, when January figures are released, Treasury and Finance Minister Mehmet Şimşek said on Thursday.

"Even with some delay, inflation targets will at least be met at the upper end of the band. Disinflation will continue in 2026," Şimşek stated during the fifth Future of Finance Summit in Istanbul.

"If you look at inflation, we went from around 64 percent-65 percent over the last three years to 44 percent. Then this year, it's currently at 31 percent. Next year's target range is between 13 percent-19 percent, but the market expects it to be in the 20s. Let me reiterate for next year: barring any additional shocks, we see the upper end of the target range as quite achievable," he added.

Şimşek explained that Türkiye's macroeconomic stability and reform program seeks to lower inflation to single digits, enhance predictability, achieve a sustainable current account balance and make these gains permanent.

He outlined the structural transformation programs, noting the first phase focused on control and risk management, the second on addressing imbalances, and the third on permanent achievement through structural changes.

"The rule-based market economy was largely established in the first phase," Şimşek said.

"It was important that inflation did not get out of control. There were many issues such as reserve accumulation and contingent liabilities. We managed those issues in the first year."