CBRT Chief Karahan Claims Disinflation Continues in Turkey

Fatih Karahan, Governor of the Central Bank of the Republic of Turkey (CBRT), stated that the disinflation process is ongoing, during his presentation at the EUROMETAL Steel Day and the 10th YISAD Flat Steel Conference.

Addressing current inflation dynamics, Karahan acknowledged a temporary uptick in core inflation during the first quarter but emphasized that inflation expectations are on a downward path.

“Following the decline in goods inflation, we are now observing a clearer deceleration in services inflation as well,”
Karahan noted in his speech.

Karahan added that cost-driven pressures have begun to ease, a sign that underlying inflationary factors are losing momentum.

Turning to Turkey’s external balance, the CBRT head stated:

“Excluding gold and energy, the foreign trade balance remains stable. Despite weak external demand, Turkey’s export market share is growing. The current account deficit is at historically low levels,” he said.