Inflation expectations rise in July

ANKARA

The end-year inflation expectations in Türkiye increased from 64.59 percent in June to 69.94 in July, according to the Central Bank’s Survey of Market Participants.

Consumer prices are expected to increase by 3.4 percent on a monthly basis in June, while the monthly inflation rate is forecast to ease to 2.88 percent in August, the survey, which was released on July 8, also showed.

Annual consumer price inflation accelerated from 73.5 percent in May to 78.6 percent in June, with prices advancing 4.95 last month from May.

The 12-month ahead inflation expectations also increased from 37.91 percent in June to 40.23 percent in July.

Participants of the Central Bank survey revised upwards their GDP growth expectations for 2022 from 3.5 percent to 3.6 percent, while their economic growth forecast for 2023 remained unchanged from the previous month at 3.8 percent.

The Turkish economy grew by 7.3 percent in the first quarter of 2022 from a year ago, after expanding 9.1 percent in the final quarter of 2021. In the whole of 2021, the country’s economy grew by 11 percent, up from the 1.8 percent expansion recorded in 2020.

Participant of the survey lifted their current account deficit estimate for 2022 from $37 billion to $37.54 billion and from $23 billion to $24.36 billion for next year.

The Survey of Market Participants monitors the expectations of decision-makers and experts in the financial and real sectors regarding various economic variables. This month’s 48 participants of the survey included business organizations, holding companies, banks, the non-financial sector and professionals.