Iran War Tests Turkish Central Bank’s Ambitious Inflation Target

A global energy price shock sparked by the US-Israeli war on Iran is forcing Turkey’s central bank to raise its inflation forecasts, putting further strain on the country’s efforts to slow price gains.

Governor Fatih Karahan will present the monetary authority’s quarterly report on Thursday. Analysts widely expect increases in the year-end inflation target and forecast range, which are currently at 16% and 15%-21%, respectively.