Inflation expectations for end of 2025 fall to 31.2 percent: Survey

ANKARA

The Central Bank’s Survey of Market Participants, released on Dec. 12, showed that year‑end consumer inflation (CPI) expectations for 2025 eased to 31.17 percent in the latest survey period, down from the previous 32.2 percent.

Participants’ 12‑month ahead CPI expectation also edged lower, declining from 23.49 percent to 23.35 percent. The 24‑month ahead inflation forecast fell from 17.69 percent to 17.45 percent.

Türkiye’s annual inflation rate fell to 31.07 percent in November, its lowest level in four years. On a monthly basis, consumer inflation dropped to 0.87 percent, marking a 30-month low.

Meanwhile, Central Bank Governor Fatih Karahan reiterated that their top priority remains price stability, emphasizing that the bank will maintain its tight monetary policy stance.

Speaking at the TÜSİAD High Advisory Council Meeting on Dec. 12, Karahan said, “Disinflation is underway and will continue.”

Karahan noted that both short‑term indicators and the medium‑term outlook point to a sustained disinflation trend. “To ensure the permanence of this decline, we will continue to uphold our tight monetary policy stance,” he said.

The governor outlined three key priorities: Strengthening reserve adequacy, reducing the stock of FX‑protected deposit accounts (KKM) and establishing price stability.

“We have increased the bank’s net reserves by more than 120 billion dollars. The balance of KKM accounts had reached $143 billion dollars; it has now fallen below $ 1 billion,” he said.

Karahan stressed that the most important priority is price stability. “We have established disinflation. To secure the durability of this improvement, we will maintain our tight monetary policy stance,” he said.