Turkish Central Bank increases 2026 inflation forecast to 28%

The Central Bank of Turkey has raised its inflation forecast for the end of 2026 to 28%, while maintaining its interim target at 24%. This comes as a result of rising import prices denominated in lira, particularly due to developments in diesel, natural gas, and other commodities. At the same time, the bank kept its inflation targets for 2027 and 2028 at 15% and 9%, respectively, reaffirming its commitment to a tight monetary policy to combat price pressures. Recent data showed a 1.78% monthly increase in consumer prices in July, with the annual inflation rate decreasing to 31.75%.

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