Turkey Revises 2026 Inflation to 28.4%

Turkey has raised its inflation forecast for the end of 2026 from 16% to 28.4%, due to the repercussions of the war in the Middle East which added approximately 7 percentage points to the projections. Although annual inflation slowed to 31.51% in August 2026, the government continues to prioritize combating inflation, with expectations of it decreasing to 21% in 2027, 13.5% in 2028, and 9% in 2029. The inflation trajectory faces greater external pressures than anticipated, particularly from rising energy costs and geopolitical tensions, reflecting greater challenges for the Turkish government in achieving its economic objectives.

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