Inflation

Food and other consumer goods prices were comparatively much higher than in other European countries even before the inflationary wave of the last two years. We secured this lead with subsequent performances: In August, inflation in the eurozone fell to 2.2% from 2.6% in July, but in Greece it rose to 3.2% from 3%, the fourth highest among the 20 countries in the common currency area.

Finance Minister Mehmet Şimşek has announced that inflation in Türkiye is projected to drop below 20 percent next year and to single digits the following year, urging the business community to consider the Medium-Term Program in their financial calculations.

China unveiled some of its boldest measures in years on Tuesday aimed at boosting its struggling economy as leaders grapple with a prolonged property sector debt crisis, continued deflationary pressure and high youth unemployment.

For 2026, the Bank of Greece anticipates growth of 2.3%, highlighting that a key risk factor for these projections is the potential escalation of the geopolitical crisis in Ukraine and the Middle East.

Inflation is expected to fall to 3% in 2024, primarily due to a decrease in inflation for food, non-energy industrial goods and services.

Analysts at some international banks are now expecting the Turkish Central Bank to deliver a rate cut in November after the bank altered its guidance.

In a statement accompanying its rate decision, the bank said on Sept. 19 that "monetary policy tools will be used effectively in case a significant and persistent deterioration in inflation is foreseen."

In August 2024, Bulgaria experienced a monthly inflation rate of 0.1%, while the annual inflation compared to August 2023 stood at 2.1%, according to data from the National Statistical Institute (NSI).

Steve Hanke, known as the "father" of the Bulgarian Currency Board, recently shared his insights on Nova TV. Hanke, who has been honored with eight honorary doctorate degrees—including three in Bulgaria—has served as an economic advisor to various heads of state and was a senior economist under President Ronald Reagan.

For the first time in four years, the United States Federal Reserve has lowered the key interest rate, reducing it by half a percent to a range of 4.75 to 5 percent. This significant move aims to ease inflationary pressures and improve the labor market.

In a widely expected move, Türkiye's Central Bank has left its policy rate unchanged at 50 percent for the sixth month in a row.

In a statement released after the Monetary Policy Committee meeting on Sept. 19, the bank reiterated that it remains highly attentive to inflation risks.

Debate is swirling around how big an expected U.S. interest rate cut will be this week, while market sentiment is being dragged by worries about the Chinese economy.

The yen edged to a new high since December ahead of the Federal Reserve decision on Sept. 18 and a policy meeting at the Bank of Japan two days later.