Skip to main content

Turkey raises inflation forecasts

The Turkish lira is also again falling close to historically low levels against the US dollar.
Price tags are seen on a market shelf of fresh fruit and vegetables on May 05, 2022, in Istanbul, Turkey.

The Turkish government is predicting higher inflation for the rest of the year. 

The central bank released its Inflation Report for 2022 today. In the report, the financial institution predicted year-end annual inflation will reach 60.4%, up from the previous prediction of 42.8%. 

Why it matters: Inflation is running rampant in Turkey, rising above 78% in June. The central bank cited “supply shocks” resulting from the Russian invasion of Ukraine for the high inflation, specifically with regard to fuel, food and agricultural prices. 

Indeed, commodity prices are rising across the region. Ukraine and Russia are both major wheat exporters to the Middle East, and the war has also disrupted global supply chains, including in the oil and gas markets

Many monetary institutions have raised interest rates to counter inflation this year. Saudi Arabia raised rates again yesterday, for example. Turkish President Recep Tayyip Erdogan, however, has long held the unorthodox position that raising interest rates leads to higher inflation. Turkey’s central bank has therefore kept its rates unchanged during the global inflationary crisis. 

Know more: Turkey’s currency, the lira, fell to the region of 17.8 to the US dollar this week, nearing an all-time low from last December. 

Join hundreds of Middle East professionals with Al-Monitor PRO.

Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.


The Middle East's Best Newsletters

Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.


What's included:
Our Expertise

Free newsletters available:

  • The Takeaway & Week in Review
  • Middle East Minute (AM)
  • Daily Briefing (PM)
  • Business & Tech Briefing
  • Security Briefing
  • Gulf Briefing
  • Israel Briefing
  • Palestine Briefing
  • Turkey Briefing
  • Iraq Briefing

Premium Membership

Join the Middle East's most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.

$25.00 / month
billed annually

Become Member Start with 1-week free trial

We also offer team plans. Please send an email to and we'll onboard your team.

What's included:
Our Expertise AI-driven

Memos - premium analytical writing: actionable insights on markets and geopolitics.

Live Video Q&A - Hear from our top journalists and regional experts.

Special Events - Intimate in-person events with business & political VIPs.

Trend Reports - Deep dive analysis on market updates.

All premium Industry Newsletters - Monitor the Middle East's most important industries. Prioritize your target industries for weekly review:

  • Capital Markets & Private Equity
  • Venture Capital & Startups
  • Green Energy
  • Supply Chain
  • Sustainable Development
  • Leading Edge Technology
  • Oil & Gas
  • Real Estate & Construction
  • Banking

Start your PRO membership today.

Join the Middle East's top business and policy professionals to access exclusive PRO insights today.

Join Al-Monitor PRO Start with 1-week free trial