Inflation Targets

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Inflation targets are set jointly by the CBRT and the Turkish Government for 3-year periods. The year-on-year change in the consumer price index as of year-end is used as the inflation target.

An uncertainty band has been defined around the inflation target at 2 points above and below it. If the year-end inflation falls outside this band, then the CBRT writes an open letter to the Government in line with the accountability principle.

Under the inflation targeting regime, year-end inflation rates calculated as the 12-month change in the Consumer Price Index (CPI) are set as the target variable. In addition, inflation targets are jointly determined with the Government as point targets.

Today, a higher inflation target is set in Turkey compared to advanced economies due to:

  • The structural transformation in Turkey in the recent years,
  • Rigidities brought about by a history of high inflation,
  • Measurement bias resulting from the increase in quality,
  • EU harmonization process.

The following table lists the target and actual inflation rates in Turkey since 2002: 

  Target Realization
2002 35 29.7
2003 20 18.4
2004 12   9.3
2005 8   7.7
2006 5   9.7
2007 4   8.4
2008 4 10.1
2009    7.5   6.5
2010    6.5   6.4
2011    5.5 10.4
2012 5 6.2
2013 5 7.4
2014 5 8.2
2015 5 8.8
2016 5 8.5
2017 5 11.9
2018 5 20.30
2019 5 -
2020 5 -
2021 5 -
2022 5 -