Disinflation continues across all sub-groups, says Central Bank chief

ANKARA

Annual inflation decreased to 30.9 percent in March and disinflation continued across all sub-groups, albeit at different rates, Central Bank Governor Fatih Karahan said.

Karahan delivered a presentation titled “Inflation and Macroeconomic Outlook” in New York, where he shared assessments regarding inflation and the broader macroeconomic outlook.

Underlying inflation decreased in March, he added.

“Lower inertia in rent and education supported the overall disinflation. We expect this support to continue this year,” said Karahan, adding that the sliding scale mechanism (Eşel mobil) limits inflationary pressures.

He also noted that economic activity is slowing down in Türkiye and capacity utilization remains weak.

“Demand indicators point to a slowdown in economic activity. Credit growth has slowed down in the first quarter,” said Karahan.

He stressed that the current account deficit, perennially shaped by energy and tourism, remains below its historical average and the Central Bank’s reserves are stronger than previous outflow periods.

The decline in gold prices affected household FX demand, said Karahan.