Medium-Term Program announced: Single-digit target in inflation
The Medium-Term Program, which determines Turkey's three-year economic roadmap, has been announced. Steps to combat inflation and targets by years have become clear with the program.
The Medium-Term Program, outlining the roadmap for Turkey's economic policies over the next three years, has been announced. The program highlights the fight against inflation, the disinflation process, and the single-digit inflation target.
Main Objectives of the MTP
In the Medium-Term Program, which sets out the roadmap for Turkey's economic policies over the next three years, the fight against inflation emerged as one of the main headings.
During the program period, it is aimed to carry out monetary, fiscal, and income policies in coordination, break the inertia in inflation, and re-establish price stability.
The Process of Fighting Inflation
According to the MTP covering the 2027-2029 period, annual consumer inflation materialized at 31.51 percent as of August.
While the disinflation process is planned to be maintained decisively and uninterruptedly in the new period, it is targeted to reduce the rates back to single digits.
Coordination of Policies
It was stated that strong coordination will be maintained among monetary, fiscal, and income policies in the fight against inflation.
While ensuring that demand conditions follow a non-inflationary path, it is aimed to support the contribution of total demand to the decline in inflation.
Inflation Targets by Years
According to the MTP, the CPI is projected to increase by an annual 28.4 percent by the end of 2026.
Year-end inflation is targeted to fall to 21 percent in 2027 and to 13.5 percent in 2028.
In 2029, the final year of the MTP, inflation is projected to drop to 9 percent and fall back into single digits.