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Turkey has raised its year-end inflation forecast to 28.4%, Vice President Cevdet Yilmaz said on Sunday when he unveiled the country’s medium-term economic programme for 2027-2029. <\/p>\n
“We expect inflation to start declining again in the fourth quarter of 2026 and to reach 28.4% by the end of the year,” Yilmaz said in a televised address. <\/p>\n
The new forecast is significantly higher than previous projections. <\/p>\n
In last year’s medium-term programme covering 2026-2028, the government had forecast year-end inflation at 16%. <\/p>\n
Under the new programme, inflation is projected to fall to 21% in 2027, 13.5% in 2028 and 9% in 2029. <\/p>\n
Related<\/strong> <\/p>\n Turkey’s annual inflation rate eased to 31.51% in August from 31.75% in July, according to official data. <\/p>\n Yilmaz said the war in the Middle East had played a key role in the upward revision of the inflation outlook. <\/p>\n “According to our central bank, the direct and indirect effects of the war on inflation have been estimated at approximately seven percentage points,” he said. <\/p>\n Annual inflation, which has remained above 30% since December 2021, peaked at more than 75% in May 2024 before beginning to slow. <\/p>\n Related<\/strong> <\/p>\n Yilmaz said the government had made “significant progress in combating inflation”, which remains the top priority of its economic programme. <\/p>\n “Inflation, which had risen to 75.5% in May 2024, has begun to show a clear downward trend as a result of the policies we have implemented,” he said. <\/p>\n<\/p><\/div>\n