Türkiye Revises Inflation Forecast Projections Upward

(MENAFN) Türkiye dramatically revised its inflation projections upward on Thursday, exposing the mounting pressures threatening the country's hard-fought campaign to tame runaway prices.

Central Bank Governor Fatih Karahan, speaking at a press conference in Istanbul, unveiled a steeper-than-anticipated adjustment — pushing the 2026 interim inflation forecast to 24 percent, nearly double the previous estimate of 16 percent, with the US-Israel-Iran conflict cited as a key driver of the deteriorating outlook.

Looking further ahead, the Central Bank now projects year-end inflation of 15 percent for 2027, sharply higher than the prior forecast of 9 percent.

"Inflation is still problem number one," Karahan noted.

The revisions serve as a stark reminder of how vulnerable Türkiye's economy remains to external shocks. Annual inflation had once spiraled to a staggering 85.5 percent in October 2022 — a crisis-level surge fueled by currency collapse and unorthodox monetary policymaking.

A decisive pivot toward tighter, more conventional economic policies in mid-2023 set the stage for an aggressive disinflation drive that has since delivered measurable progress. However, Thursday's forecast revision signals that the path back to price stability remains fraught, with geopolitical turbulence now threatening to undo months of hard-won gains.

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