Türkiye's central bank raised its inflation forecast for the end of 2026 to 28% from 26% but left its interim inflation target for the same period at 24%, Governor Fatih Karahan said on Thursday. Presenting the central bank's quarterly inflation report in Istanbul, Karahan said the bank kept its interim inflation target for end-2027 steady at 15% and the interim target for end-2028 stayed at 9%. "The CBRT will ensure the tightness required by the projected disinflation path in line with the interim targets," Karahan said. He said the upward revision of the end-2026 forecast was "driven by the increase in the assumption for Turkish lira-denominated import prices in view of the developments in prices of diesel oil, natural gas, and some other commodities". Last month, the central bank left its key interest rate at 37%, as expected, keeping borrowing costs unchanged for a fourth consecutive meeting as it monitors the inflationary impact of the Iran war. Turkish consumer price inflation rose to 1.78% month-on-month in July while annual inflation dipped slightly from a month earlier to 31.75%.
