Türkiye raises 2026 year-end inflation forecast to 29.5%
<p>Istanbul: The Turkish Central Bank has raised its year-end inflation forecast for 2026 to 29.5 percent, up from 28 percent.</p> <p>The year-end inflation forecast for 2027 had also been revised upward, to 21 percent from 15 percent, while the projection for 2028 had been raised to 13.5 percent from 9 percent, Governor Fatih Karahan told a press conference in Istanbul.</p> <p>“Recent data…
Istanbul: The Central Bank of Turkey has increased its year-end inflation prediction for 2026 to 29.5 percent, compared to the previous estimate of 28 percent. Governor Fatih Karahan announced these revised projections during a press conference in Istanbul.
Karahan highlighted that recent data indicates a clear improvement in the underlying inflation trend. He emphasized the importance of curbing services inflation, particularly for items that have shown considerable rigidity in the past.
Regarding energy markets, Karahan noted that crude oil and natural gas prices surged significantly in September and October. These prices remained higher than those recorded during the previous reporting period and before the Iran conflict. Additionally, disruptions in the Strait of Hormuz have impacted alternative trade routes, leading to increased freight costs due to extended transit times and higher insurance premiums.
Karahan cautioned that geopolitical events causing supply-side shocks are slowing the reduction in headline inflation. This situation maintains upside risks to the inflation outlook, necessitating a cautious approach from policymakers.
In terms of economic activity, growth slowed down in the second quarter primarily due to a deceleration in domestic demand. The third quarter's indicators showed varying trends across sectors, with services output expanding while industrial production declined.
Written by urgent.news from The Peninsula Qatar Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
