Türkiye's central bank raises 2026 inflation target to 24 pct amid risks

ISTANBUL, May 14 (Xinhua) -- The Central Bank of Türkiye on Thursday raised its inflation forecast for 2026 to 24 percent, up from a previous estimate of 16 percent, citing external risks and persistent price pressures.

Speaking at a press conference in Istanbul to present the second inflation report of the year, Central Bank Governor Fatih Karahan said the bank had also revised its inflation targets to 15 percent for 2027 and 9 percent for 2028 to reflect the impact of fluctuations in global energy prices and heightened geopolitical risks on the disinflation process.

He noted that although inflation had declined significantly from its peak in May 2024, it remained elevated. He pointed to tensions in the Middle East that began in February as a key source of negative supply shocks and a factor worsening the near-term outlook.

Despite the challenges, Karahan said the central bank would maintain a tight monetary policy stance until price stability is achieved, reiterating that the medium-term inflation target remains at 5 percent.

Türkiye's annual inflation rate rose to 32.37 percent in April from 30.87 percent in March. Enditem