Inflation outlook improving, says Central Bank governor
ISTANBUL
Turkish inflation is coming down, while sticky service inflation is easing, Central Bank Governor Fatih Karahan has stated during a presentation in London.
Türkiye's annual inflation rate dipped to 44.38 percent in December 2024, posting the seventh consecutive decline since June 2024.
Annual services inflation fell by 2.16 points in December and finished the year at 65.73 percent, according to the latest official data.
Items with backward indexation keep services inflation elevated, Karahan said at the presentation on the inflation outlook in Türkiye.
On a more positive note, the government stressed that rent inflation is on a downward trend.
The monthly increase in rents weakened in December, driven by the seasonal decline in the contract renewal rate as well as the deceleration in the rate of increases in contracts, the Central Bank said in a recent report on the monthly price developments.
Karahan said both the pricing behavior of firms in the industrial sector and corporate inflation expectations are improving, adding that household inflation expectations have also started to improve.
Commenting on the economic activity, the governor stressed that the composition of growth is shifting toward net exports.
While the share of FX-protected accounts in total deposits declined to 5.9 percent, the share of Turkish Lira deposits climbed to 58.7 percent as of January, Karahan noted.