Turkish Central Bank keeps inflation forecast constant for 2024

Türkiye's Central Bank on Thursday kept its year-end inflation forecast for 2024, 2025 and 2026 unchanged.

Annual consumer inflation is expected to reach 38% this year, Governor Fatih Karahan told a meeting held to release the bank's third inflation report of this year.

The year-end inflation forecast for 2025 and 2026 were kept at 14% and 9%, respectively, he stressed, adding that inflation is targeted to stabilize at 5% in the medium term.

He said: "As the year-end is approaching, the forecast range corresponding to 2024 should have narrowed.

"However, due to increased uncertainties stemming from recent geopolitical developments and global financial volatility, we maintained our forecast range between 34 and 42%."

Karahan said with annual inflation reaching its peak in May, the country has entered the disinflation period, and in the third quarter of the year, inflation will decline significantly.