Turkey's central bank says disinflation persists despite tougher supply shocks
Turkish Central Bank Governor Fatih Karahan told a New York conference that the country's disinflation trajectory remains on track even as supply conditions worsen.
At a presentation titled “Inflation and the Macroeconomic Outlook” during one outlet Türkiye Investment Conference in New York, Turkish Central Bank Governor Fatih Karahan said the nation’s disinflation process is continuing despite increasingly challenging supply conditions. He explained that supply shocks have significantly influenced headline inflation and that services inflation remains persistent. Karahan pointed to declining rent inflation and softer consumer demand as factors supporting the disinflation trend.
He added that overall economic growth has decelerated due to a marked slowdown in domestic demand, and that high-frequency indicators signal further demand weakening in the third quarter. Finally, he cautioned that inflation expectations still require careful monitoring.
Why it matters
The outlook signals how Turkey's monetary policy may respond to inflation pressures and growth slowdown.
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