Turkey's central bank governor sees accelerating disinflation as supply pressures ease

At an event in Istanbul, Central Bank Governor Fatih Karahan explained that the underlying inflation trend, which had risen to roughly 30% during the war-affected months of March-June, dropped to 23.7% by September and now sits about six percentage points below the headline inflation rate. He argued that this divergence signals a favorable environment for faster disinflation, provided supply-side pressures keep receding.

Karahan attributed the recent slowdown in domestic demand to the bank's tight monetary stance, noting that components most directly influenced by policy have shown the strongest price declines. He emphasized that diminishing shock effects and continued policy firmness should reinforce the disinflationary process. Finally, he reaffirmed the central bank's commitment to using all available tools to secure price stability.