Turkey’s year-end inflation forecast was hiked to 17.63% from earlier expectations of 16.74%, according to a survey Friday.
The Central Bank of the Republic of Turkey (CBRT) has published its market participants survey for October, which showed the deterioration in inflation continuing.
The October survey revealed the inflation forecast as 13.91% after the next 12-month period, whereas the prediction was 12.94% in the previous survey.
While the inflation expectation after the next 24-month period was 10.71% in the previous survey, it was recorded as 11.27% in the October survey.
Turkey’s consumer price inflation rose slightly less than expected to 19.58% in September, the highest since March 2019.
The survey participants’ expectation for the month-end key policy rate was meanwhile revealed as 17.63%. It was 19% in the previous survey.
After headline inflation rose above the policy rate in August, the central bank started emphasizing core “C” inflation and later cut its key rate by 100 basis points to 18%. The “C” measure also rose to 16.98% in September.
The Turkish lira is expected to drop further against the United States dollar at the end of the year. The survey sees the year-end dollar/lira exchange rate at 9.22, up from 8.92.
The exchange rate forecast for the 12 months after became 10.01, recording at double digits for the first time.
The survey meanwhile revealed the growth expectation as 4.2%.