Tรผrkiye is closing out a year in which it appears to have largely pulled off what looked like a risky balancing act: keeping monetary policy tight long enough to break stubborn inflation without tipping the economy into recession.
After years of runaway price growth, annual inflation established a steady downward trend in 2025. Starting the year above 42%, headline inflation is heading into 2026 at just over 30%, the lowest level the country has seen since late 2021.
Authorities are not anticipated to dramatically reduce broader inflation-fighting policies in 2026. That framework has been in place since mid-2023, when policymakers sharply hiked interest rates before shifting to gradual cuts as of the end of 2024.
Data from October and November showed disinflation is back on track after summer price pressure.
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