The Turkish lira has plunged in value against the US dollar this year
The Central Bank of the Republic of Turkey has hiked its inflation forecast by just over 10 percentage points, and overshot its earlier forecast by a wide margin.
The forecast for end-2018 inflation is now 23.5%, an increase of 10.1 percentage points relative to the July projection, the central bank’s latest inflation report shows. Inflation has surged in the main due to the weakness of the lira, the CBRT says, though higher oil prices have also had an effect.
Despite inflation’s dramatic rise