Turkey Intensifies Fight Against Inflation with Tight Monetary Policies

LiquidityWizard · 2026-02-22T03:21:42+00:00

Turkey's economic authorities are committed to strict monetary control and budget discipline to reduce consumer prices. Although annual inflation has decreased to 30.65%, monthly increases remain significant, driven by seasonal price adjustments and food costs. Efforts have reduced inflation by 45 percentage points since May 2024, but more rapid disinflation is needed. The government will maintain its restrictive policies to combat ongoing inflation.

LiquidityWizard

2026-02-22 03:21:42

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Turkish economic authorities announced over the weekend their determination to maintain strict monetary control and ensure fiscal discipline as key tools to continue reducing consumer prices. Recent official data reveal a complex economic reality: although annual inflation has decreased to 30.65%, monthly increases remain significant.

Monthly Inflation Exceeds Expectations in Turkey

In January, Turkey’s Consumer Price Index rose by 4.84% month-over-month, surpassing market projections. This increase was primarily driven by traditional New Year price adjustments and sustained pressure on the costs of food and non-alcoholic beverages. These sectors continue to be key determinants in the country’s inflation dynamics.

Moderate but Insufficient Progress

Vice President Yilmaz emphasized that although a 45 percentage point reduction has been achieved since May 2024, current results do not meet government objectives. This decline in the inflation rate represents significant progress, but Turkish authorities believe that the disinflation pace must accelerate to reach more sustainable levels.

Continuity of Restrictive Policy

The Turkish government reaffirmed its commitment to current economic control measures, indicating that there will be no easing of monetary policy in the short term. This stance reflects the conviction that only through fiscal discipline and rigorous monetary control can the downward trend in prices be consolidated. Turkey remains focused on combating persistent inflation through conventional policy mechanisms and fiscal discipline.

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