Turkish households' and real sector's inflation expectations edged down in July, while forecasts by market participants rose slightly, a survey showed on Friday.
The Central Bank of the Republic of Türkiye (CBRT) said expectations for inflation in 12 months time fell 0.6 percentage points from the previous month to 32.50% among the real sector and 1.19 percentage points to 44.94% among households.
Expectations among market participants rose 0.14 percentage points to 23.95%, the survey showed.
The share of households expecting inflation to decline over the next 12 months increased by 1.93 percentage points to 17.63%.
Treasury and Finance Minister Mehmet Şimşek said household inflation expectations had fallen by a cumulative 6.6 percentage points over the past three months, while real-sector expectations had declined by 1.2 percentage points, despite uncertainty stemming from geopolitical developments.
“We formulate our policies to combat inflation with a view to achieving lasting gains. The ultimate goal of our policies is to ensure sustainable growth and a lasting increase in prosperity through high-value-added production,” Şimşek wrote on the social media platform X.
Annual inflation eased to 32.1% last month from 32.6% in May. The decline had stalled following a sharp rise in energy prices caused by the Iran war. On a monthly basis, consumer prices rose 0.99% in June, slowing from 1.7% in May.
The CBRT raised its end-2026 inflation forecast to 24% from 16% in its quarterly inflation report published in mid-May, saying the short-term inflationary effects of the Iran war would remain "pronounced."
The bank projects inflation falling to 15% at the end of 2027 and 9% at the end of 2028.
Friday's survey showed households continued to identify food and energy as the categories with the largest price increases over the past year and those expected to see the strongest inflation over the next 12 months.
The proportion of respondents identifying food as the fastest-rising category increased 0.4 percentage points to 39.7%.
Households' expectations for annual house price inflation over the next 12 months declined 1.33 percentage points to 32.49%.
The survey also showed gold remained the most preferred investment choice, although the share of respondents selecting it fell 4 percentage points to 40.3%.
The proportion preferring to invest in real estate, including homes, commercial property or land, increased 1.4 percentage points to 38.5%.
