According to the compilation made by the AA correspondent from the MTP covering the 2027-2029 period, it is aimed to continue the disinflation process with determination, following the annual consumer inflation rate of 31.51 percent as of August.
The main objectives of the program are to break the inertia in inflation by ensuring that the disinflation process continues steadily and uninterruptedly, and to ensure price stability by reducing the inflation rate to single-digit levels during the program period.
In this context, strong coordination of monetary, fiscal and income policies will be maintained within the framework of the fight against inflation during the program period, and demand conditions will be ensured to follow a non-inflationary path. The contribution of total demand conditions to the decline in inflation will be supported by more favorable cost conditions, and production potential will be increased by improving competition in product markets and strengthening supply-side policies.
With the decrease in the inflation rate, a more balanced structure in income distribution will be established, contributing to a permanent increase in welfare. The Central Bank of the Republic of Türkiye (CBRT) will continue to use all policy tools effectively until price stability is permanently established.
The inertia in inflation will be broken
In the fight against inflation, the inflation targeting practice and floating exchange rate regime within the CBRT will be continued with determination, and exchange rates will be formed according to the balance of supply and demand under free market conditions.
Communication channels will be strengthened to anchor inflation expectations in line with the targets.
In order to increase market transparency, public awareness of the "Market Prices" website, which shares prices in chain markets, will be increased.
In addition, with a holistic approach, pricing behavior based on history will be replaced by pricing based on inflation expectations, and the inertia in inflation will be broken by preventing price rigidities. The compliance of managed and guided prices with inflation forecasts and targets will be increased.
Stability in food prices and security of supply will be ensured
Purchase prices of agricultural products will be determined in a way that will help reduce past inflation indexation behavior, taking into account their impact on public finances, market dynamics and program targets.
Short- and long-term supply-demand and import-export changes in food and agricultural products will be monitored with an early warning approach. In order to strengthen food supply security, production planning will continue in practice, taking into account the supply-demand balance, sufficiency levels, water constraints and regional production potentials in the production of strategic agricultural products.
Inflation forecasts
According to the MTP targets, the annual increase in CPI is expected to be 28.4 percent at the end of 2026, while the end-of-year inflation is aimed to decrease to 21 percent in 2027, to 13.5 percent in 2028, and to 9 percent in 2029, which is the end of the program period, to fall to single digits.
