ISTANBUL, Aug. 13 (Xinhua) -- Türkiye's central bank on Thursday raised its end-2026 inflation forecast to 28 percent from 26 percent, citing geopolitical risks.

Central Bank Governor Fatih Karahan announced the revised forecast while presenting the year's third Inflation Report in Istanbul.

Photo via CGTN

Karahan said consumer price growth is projected to slow to 15 percent by the end of 2027 and 9 percent by the end of 2028 before converging to the bank's medium-term target of 5 percent.

Addressing challenges to the disinflation process, Karahan said geopolitical developments have remained volatile since the bank's previous report in May.

"We are proactively monitoring the effects of these developments on the inflation outlook," he said, noting that although geopolitical risks temporarily eased following a U.S.-Iran agreement in June, ongoing conflicts and uncertainty over future agreements continue to pose risks.

Türkiye's annual inflation rate eased to 31.75 percent in July, down from 32.11 percent in June.