Turkey Faces Genuine Deflation Prospects, Central Bank Vice Governor Says
Turkey is facing genuine deflation prospects, according to Osman Cevdet Akcay, Vice Governor of the Central Bank of Turkey. Akcay made the statement during a panel discussion at the European Bank for Reconstruction and Development (EBRD) annual meeting.
Inflation on a Downward Trajectory
"I believe we are facing genuine deflation prospects in the true sense of the word," Akcay said. He added that a significant and sustainable break in inflation figures could be observed soon.
Rebuilding Foreign Reserves
In parallel, Akcay indicated that the Central Bank is progressively rebuilding its foreign reserves, which were affected by recent political turmoil.
Orthodox Monetary Policies
Since 2023, inflation in Turkey has been on a downward trajectory, a consequence of a shift towards orthodox monetary policies, led by President Recep Tayyip Erdoğan. This shift was implemented under the guidance of economist Mehmet Şimşek, appointed as Minister of Treasury and Finance in 2023, and Hafize Gaye Erkan, then Governor of the Central Bank.
Inflation Rate Continues to Fall
In November 47.09%, the inflation rate was significantly lower than its historic peak of 83% in October 2022. More recently, the annual inflation rate continued its downward trend, reaching 37.86% in April 2025, compared to 38.10% the previous month.
