War-driven energy costs push inflation outlook higher
War-related increases in energy costs and higher food prices have pushed the Central Bank’s end-2026 inflation forecast to 28 percent, though Governor Fatih Karahan said the revision did not reflect a deterioration in the underlying inflation trend.
In its third Inflation Report of the year, published on Aug. 13, the bank raised the forecast from 26 percent.
It kept its projections for 2027 and 2028 unchanged at 15 percent and 9 percent, respectively.
The bank attributed the revision to stronger-than-expected increases in diesel, natural gas and other commodity prices.
