Turkey's central bank has today raised its inflation forecast for this year and the next, as consumer price increases have slowed less than expected in recent months despite higher interest rates.
The central bank now sees inflation reaching 44% at the end of 2024, up from a previous estimate in August of 38%.
Consumer prices are expected to rise by 21% by the end of 2025, compared to 14% in the last forecast.
"The underlying trend in inflation is improving, but more slowly than expected," central bank governor Fatih Karahan told reporters.
Turkey's central bank began to raise interest rates last year to battle soaring prices, after President Recep Tayyip Erdogan dropped his opposition to orthodox monetary policy.
In October, the central bank kept its main interest rate stable at 50% for a seventh consecutive month.
Inflation peaked in May at 75.45%, fuelled by a weak Turkish lira.
The inflation rate slowed to 49.4% in October, less than expected, and missed forecasts again in September when it cooled to 48.6%.
