The Turkish central bank announced on Friday that it has revised its inflation forecasts, now projecting a rate of 44% by the end of the year, an increase from the previous estimate of 38% made in August.
“We have updated our inflation projections for the end of 2024 and 2025 to 44% and 21%, respectively. We expect inflation to decrease to 12% by the end of 2026,” stated Fatih Karahan, the governor of the Turkish central bank, during a press conference.
In August, his team had forecasted that inflation would fall to 14% by the end of 2025 and to 9% before the conclusion of 2026.
“The underlying trend of inflation is improving, but at a slower pace than anticipated,” Karahan acknowledged on Friday, ruling out any immediate reduction in the benchmark interest rate, which has remained stable at 50% since March, “to ensure the continuation of disinflation.”
Inflation, influenced by the weakness of the Turkish lira, slowed to 48.6% in October, down from 49.4% in September, following a peak of 75.45% in May, according to official data.
