Türkiye aims to break inflation inertia and bring consumer inflation back to single-digit levels during the new Medium-Term Program (OVP) period, according to the government’s 2027-2029 economic roadmap.
The program foresees the continuation of the disinflation process following annual consumer inflation of 31.51 percent recorded in August.
Under the OVP targets, annual consumer inflation is projected to reach 28.4 percent by the end of 2026, before declining to 21 percent in 2027, 13.5 percent in 2028 and 9 percent by the end of 2029, returning to single-digit levels.
The program identifies the sustained and uninterrupted continuation of disinflation as a key objective, aiming to restore price stability during the program period.
To support this goal, monetary, fiscal and income policies will continue to be implemented in close coordination, while domestic demand conditions will be guided along a non-inflationary path.
The contribution of aggregate demand conditions to lower inflation will be supported by more favorable cost conditions, while enhanced competition in product markets and stronger supply-side policies will help raise the economy’s production potential.
The Central Bank will continue to use all available policy instruments effectively until price stability is permanently secured, according to the program.
Türkiye will also maintain its inflation-targeting framework and floating exchange rate regime, with currency rates continuing to be determined by market supply and demand conditions.
Communication channels will be strengthened to anchor inflation expectations in line with official targets.
Through a comprehensive policy framework, pricing decisions will be increasingly guided by inflation expectations rather than past inflation, reducing price stickiness and helping to overcome inflation inertia. Administered and regulated prices will be aligned more closely with inflation forecasts and targets.
Authorities will monitor short- and long-term changes in the supply, demand, imports and exports of food and agricultural products through an early-warning approach. Production planning for strategic agricultural goods will continue, taking into account supply-demand balances, self-sufficiency levels, water constraints and regional production potential in order to strengthen food security.
