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Inflation expectations across Türkiye's key sectors continued to ease in December, with households now expecting inflation to average 50.9% over the next 12 months, according to the Central Bank of the Republic of Türkiye’s (CBRT) Sectoral Inflation Expectations survey.
The figure represents a 1.34 percentage point decrease from the previous month, while the proportion of households anticipating a decline in inflation over the next year also slipped slightly, falling 0.30 percentage points to 24.53%.
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Expectations among businesses and financial professionals also moved lower.
The real sector’s average inflation forecast for the next 12 months fell by 0.90 percentage points to 34.8%. Meanwhile, market participants, which include banks, investment firms, and other financial institutions, lowered their projections by 0.14 percentage points to 23.35%.
These declines continue a yearlong trend of improving inflation sentiment. Compared to the same period a year ago, 12-month inflation expectations have fallen by 12.2 points among households, 12.8 points in the real sector, and 3.7 points among market participants.
Commenting on the figures, Treasury and Finance Minister Mehmet Simsek emphasized that the improving expectations and declining service inflation will continue to support Türkiye’s disinflation path.
"The trend of improving expectations and the decline in service inflation will continue to support the disinflation process," Simsek said on his social media account. "With policies that reduce supply-side risks and enhance competitiveness, we aim to achieve price stability," he added.
Türkiye's inflation dropped to 31.07% in November, with monthly inflation coming in at around 0.87%, the lowest rate since mid-2023. According to the Central Bank of the Republic of Türkiye’s (CBRT) December Market Participants Survey, inflation in December is also expected to remain around 1.08%, implying an annual rate of 31.17%.
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