Türkiye Unveils 3-Year Plan to Cut Inflation to Single Digits

Türkiye has unveiled a three-year economic roadmap aimed at reducing annual consumer inflation from the current 31.51% to single-digit levels by 2029.

The new Medium-Term Program, covering 2027–2029, calls for close coordination between monetary, fiscal and revenue policies to break persistent inflationary cycles and gradually stabilize price expectations.

Türkiye’s Inflation Targets Through 2029

According to the official program, annual consumer inflation is projected to follow this path:

• End of 2026: 28.4%
• 2027: 21%
• 2028: 13.5%
• 2029: 9%

The government plans to continue the Central Bank of the Republic of Türkiye’s inflation-targeting framework alongside a floating exchange rate regime, allowing market forces to determine the value of the Turkish lira.

Measures to Reduce Price Pressures

The program includes measures on both the monetary and supply sides of the economy. Authorities plan to use monetary policy tools to cool domestic demand while strengthening supply-side policies and competition in markets.

One of the priorities is to change how businesses set prices. Companies are encouraged to base their future price expectations on official inflation targets rather than automatically adjusting prices according to past inflation rates.

The government also plans to change how agricultural purchase prices are determined. State purchase prices will take into account public finance impacts and market conditions rather than simply following historical inflation.

Agricultural production plans will also be adapted to the potential of different regions, with the aim of supporting long-term food security.

Focus on Transparency and Inflation Expectations

The government says communication and access to pricing information will be strengthened as part of the disinflation strategy.

A dedicated website displaying prices at supermarket chains will receive greater promotion, giving consumers easier access to price information and improving market transparency.

The Central Bank is also expected to maintain its current policy framework and monetary tools throughout the three-year period to support the continued disinflation process.

What the Plan Means for Türkiye’s Economy

The Medium-Term Program sets out a gradual path toward lower inflation, with the government targeting a reduction from current levels to 9% by the end of 2029.

The strategy combines monetary policy, fiscal measures, supply-side reforms and efforts to influence inflation expectations. The success of the plan will depend on how consistently these measures are implemented over the coming three years.