Türkiye aims to continue its disinflation process without interruption despite a higher-than-earlier-expected inflation projection in the near future due to the fallout from the Iran war, according to its updated economic blueprint.
The 2027-2029 Medium-Term Program (MTP), unveiled Sunday, projects a year-end inflation forecast of 28.4%, compared to 16% estimated last year.
Officials said the war in the Middle East had played a key role in the upward revision of the inflation outlook.
The direct and indirect effects of the conflict on inflation have been estimated at approximately 7 percentage points, according to the Central Bank of the Republic of Türkiye (CBRT).
Türkiye’s annual inflation rate eased to 31.51% in August from 31.75% in July, according to official data. The decline had stalled following a sharp rise in energy prices caused by the Iran war.
