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Turkey raises year-end inflation forecast to 65%, amid economic headwinds

The projection has been raised from 58% in July due to weakening global economic activity and oil volatility.
Burak Kara/Getty Images

ANKARA — Turkey's Central Bank raised its year-end annual inflation projection to 65% from 58%, Governor Gaye Erkan said on Thursday, citing weakening global economic activity and increased oil price volatility. 

Unveiling the bank’s medium-term projections, Erkan said it had revised its year-end annual inflation forecasts to 65%, 36% and 14% for 2023, 2024 and 2025, respectively. 

“The weakening global economic activity, the increased volatility in oil prices, the expectation that monetary policies will remain restrictive for a longer period and the capital outflows pose risks to the inflation outlook in [Turkey] as well,” Erkan said at an Ankara briefing.

While the bank increased its 2023 and 2024 forecasts by 7% and 3% respectively, its projection for year-end 2025 has been lowered by 1%.

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