The consumer price index in Istanbul, Türkiye’s largest city and its economic center, rose 5.16% month-on-month in January and 48.4% year-on-year, according to data released by the Istanbul Chamber of Commerce on Saturday.
Wholesale prices in the city, home to around a fifth of Türkiye’s population of 85 million, rose 2.83% month-on-month and 38.15% year-on-year.
The Turkish Statistical Institute will release its January inflation data on Monday.
Experts and economists forecast that monthly inflation, which is the basis on which the Central Bank of Türkiye determines its monetary policy, will rise between 3.75 and 5%, on an average of 4.29%.
On a monthly basis, consumer prices increased 1.03% in December.
Economists expected the annual inflation would come in at 41.11% in January, down from 44.38% in December 2024.
Last month, the Central Bank cut its benchmark one-week repo auction rate by 250 points to 45% from 47.5%, marking its second rate cut after keeping rates steady for eight months.
“While the underlying trend of inflation decreased in December, leading indicators point to an increase in January, in line with the projections,” the bank's Monetary Policy Committee said in a statement in December.
According to the Central Bank’s survey of market participants, inflation is expected to be 27.05% at the end of 2025.
Finance Minister Mehmet Simsek said the government aims to bring inflation down to 21% through supply-side policies and fiscal discipline, far from its medium-term goal of 5%.
Speaking at the 7th Ordinary Congress of AK Party Ankara Women’s Branches, the minister outlined future strategies to stabilize the economy amid uncertainty and global geopolitical tensions.
He emphasized that Türkiye has significantly reduced its current account deficit, which was a key factor in the Turkish lira’s vulnerability.
The country’s foreign exchange reserves have reached historic highs, contributing to greater financial stability, he revealed.
Additionally, Currency Protected Deposits (CPD) have been cut from $144 billion to less than $30 billion, further reducing risks, Simsek added.
Addressing fiscal discipline, he noted that despite the economic strain from the February 2023 earthquakes, the government will start reducing the budget deficit next year.
