Inflation expectations rise again in March

ISTANBUL

The inflation expectations for the end of 2024 increased from 42.96 percent last month to 44.19 percent in March, according to the Central Bank’s Survey of Market Participants.

The 12-month ahead inflation expectations fell from 37.78 percent to 36.7 percent, while participants of the survey lowered their 24-month ahead inflation forecasts from 23.05 percent to 22.67 percent.

Inflation is expected to be 3.43 percent this month and 3.42 percent next month, the survey showed.

Consumer prices advanced 4.53 percent in February, bringing the annual inflation rate from 64.86 percent to 67.07 percent, according to the latest official data.

Those who participated in the survey kept their economic growth expectations for 2024 and 2025 unchanged at 3.3 percent and 3.8 percent, respectively.

Participants slashed their current account deficit expectations for 2024 from a previous $34.6 billion to $33.3 billion. For 2025, they also cut the deficit forecast from $32.9 billion to $31.8 billion.

Türkiye’s annualized current account deficit declined from $45.4 billion in December 2023 to $37.5 billion in January this year.

Participants of the survey expect the U.S. dollar rate to be 40.53 to the Turkish Lira at the end of this year.