Inflation & Prices
Turkey Raises Inflation Forecasts, Closing Gap With Markets
- Year-end inflation forecast for 2025 raised from 14% to 21%
- Karahan did not provide clarity on timing of rate-cut cycle
A Turkish national flag hangs above the Arasta Bazaar in Istanbul.
Photographer: David Lombeida/BloombergThis article is for subscribers only.
Turkey’s central bank raised its inflation forecasts for this year and through 2026, bringing them closer to market expectations after price gains exceeded estimates for two consecutive months.
The latest outlook shows officials see inflation finishing this year at 44% and then reaching 21% by the end of 2025, up from their previous estimates of 38% and 14%, respectively. The revision, “though not ideal, is not a serious deviation” and the bank expects price growth at 38% in March, Governor Fatih Karahan said Friday in the capital Ankara.