Key insights
- S&P Global raised Turkey's 2026 inflation forecast to 28.9% due to rising energy prices and Turkey's reliance on energy imports. Energy price volatility linked to the Iran conflict is a contributing factor. While the direct impact on US equities is limited, it highlights global inflationary pressures and geopolitical risks that could indirectly affect market sentiment.
Investing.com -- S&P Global increased its inflation forecast for Turkey to an average of 28.9% for 2026, up from a previous estimate of 23.4%, citing rising energy prices as the primary driver.
The ratings agency pointed to Turkey’s significant reliance on energy imports as a key factor in the revised outlook. Net energy imports represent between 3.5% and 4.5% of the country’s GDP, leaving Turkey exposed to fluctuations in oil and gas prices.
The upward revision comes as energy price volatility linked to the Iran conflict affects the region. Turkey has been working to control inflation over recent years, and the current energy price environment presents a challenge to those efforts.
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