Topic Modeling Analysis of Central Bank Inflation Reports with BERTopic

Between 2006 and 2024, inflation in Türkiye exhibited complex dynamics influenced by domestic and external factors. The Central Bank of the Republic of Türkiye (CBRT) implemented inflation targeting to achieve price stability, but challenges persisted due to monetary and fiscal policies, asset prices (real estate and gold), and changing consumption patterns. The CBRT’s inflation reports played a critical role in shaping policies and managing economic expectations. This study analyzes CBRT inflation reports from 2006 to 2024 using BERTopic topic modeling and natural language processing (NLP) methods. BERTopic identifies key topics and their evolution, while NLP tools examine linguistic patterns and policy orientations. The analysis evaluates how CBRT’s communication strategy responded to economic conditions and influenced inflation expectations. Findings will highlight the impact of CBRT's communication on economic stability and contribute to understanding the effectiveness of inflation-targeting strategies. This research also demonstrates the value of BERTopic and NLP in analyzing inflation reports.