Turkey tightens monetary policy approach to control soaring inflation

UncleWhale · 2026-02-22T17:00:50+00:00

Turkey is fighting inflation with strict monetary policies and fiscal discipline, as confirmed by Vice President Yilmaz. Despite a recent annual inflation rate drop to 30.65%, the government aims for further reductions while maintaining its rigorous approach.

UncleWhale

2026-02-22 17:00:50

Abstract generation in progress

Turkey continues its fight against inflation by adopting a strict monetary stance and increased fiscal discipline. Yilmaz, the country’s vice president, recently confirmed that the government will maintain this course to continue reducing inflationary pressures weighing on the economy.

Official data shows progress but deemed insufficient

According to official data reported by Jin10, Turkey’s Consumer Price Index (CPI) increased by 4.84% month-over-month in January. This result exceeded expectations due to tariff adjustments related to the New Year and rising costs observed in the food and non-alcoholic beverage sectors.

On an annual basis, the inflation rate fell to 30.65%, marking a significant improvement. However, Yilmaz believes this trajectory remains unsatisfactory. The roughly 45 percentage point decrease since May 2024 demonstrates progress, but the Turkish government considers more action is needed.

Government commitment: maintaining strict discipline in the coming months

The Turkish government is striving to further reduce consumer prices by maintaining a strict approach to fiscal and monetary levers. This strategy aims to consolidate recent gains and achieve more sustainable inflation levels. The strict policy adopted by Ankara is expected to remain a core priority in economic policy in the coming months.

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