Inflation targeting

At the same time, the decision was made to narrow the interest rate corridor from 1.5 to 1.25 percentage points, meaning that the deposit facility rate remains unchanged.

In making that decision, the Executive Board was primarily guided by the inflation projection and inflation factors in the coming period, the NBS said in a press release.

In accordance with the NBS expectations, inflation in February was lowered to 1.5 percent year-on-year, primarily on account of the high base from the prices of products that underwent one-off hikes early in 2017.

The Turkish Central Bank on Jan. 30 increased Turkey’s year-end inflation forecast from 7 percent to 7.9 percent under a tight monetary policy stance, which focused on bringing down inflation.

The Central Bank will keep interest rates on hold, in line with expectations, according to a statement released by the bank on Jan. 18.

U.S. central bankers are divided over how fast they will need to raise interest rates next year, given differences over the causes behind the low inflation and wage gains seen to date, according to a report released on Jan. 3.

The Central Bank will maintain its price stability-oriented monetary policy framework and inflation targeting will continue to shape the monetary policy regime in 2018, according to the bank’s Monetary and Exchange Rate Policy for the 2018 report issued on Dec. 5.

The consumer price index in October 2017 compared to September 2017 was 100.6%, i.e. the monthly inflation was 0.6%. The inflation rate since the beginning of the year (October 2017 compared to December 2016) has been 1.9% and the annual inflation in October 2017 compared to October 2016 was 2.5%.

Euro zone inflation undershot expectations in September, Eurostat data showed on Friday, highlighting that price growth remained week and supporting the European Central Bank's case for only gradual removal of stimulus.

When inflation dropped after six months to a single digit at the end of July, it created a festive joy. 

With the August inflation rate to be announced this week, the annual inflation figure is expected to rise to double digits again.

Inflation figures for June were better than expected and annual inflation rate went down to under 11 percent. While the decline is expected to continue in July too, the possibility of annual inflation going back to a one-digit figure is also cited.