Inflation and Macroeconomic Statements from Central Bank Governor Karahan

Central Bank of the Republic of Turkey Governor Fatih Karahan stated during a presentation in Istanbul that the slowdown in the underlying trend of inflation continues, emphasizing that tight monetary policy will be maintained until price stability is fully achieved.

Presentation in Istanbul and Main Topics

Central Bank of the Republic of Turkey Governor Fatih Karahan evaluated the inflation and macroeconomic outlook at an event held in Istanbul. During the presentation, short-term dynamics and the effects of geopolitical developments on the current account balance were addressed.

Inflation Data and the Decline Process

The annual Consumer Price Index, which peaked at 75.5 percent in May 2024, declined to 31.5 percent as of August 2026. Despite supply shocks driven by food and energy, the slowdown in the inflation trend continues.

Inflation Expectations and Expectation Rates

During the July and August period, monthly energy inflation stood at 3.9 percent and food inflation at 2.1 percent. Twelve-month-ahead annual inflation expectations for market participants were measured at 23.7 percent.

Domestic Demand and Economic Growth Rates

While a more pronounced slowdown in domestic demand was observed in the third quarter, annual GDP growth fell to 2.3 percent in the second quarter of 2026. A slowdown in total credit growth was also observed.

Current Account Balance, Exports, and Reserve Status

It was stated that exports maintain their resilient outlook and tourism revenues follow a stable course. CBRT's gross international reserves were recorded at $184 billion as of early September 2026.