Year-end inflation expectations rise

ANKARA

Inflation expectations for the end of 2023 deteriorated from 38.55 percent to 43.8 percent, the Central Bank’s monthly survey showed on July 14.

Respondents to the survey also raised their 12-month ahead inflation forecast from 30.6 percent in June to 33.2 percent in July.

Consumer prices are expected to increase by 3.8 percent in July from June, the survey showed.

Türkiye’s annual inflation rate eased from 39.59 percent in May to 38.2 percent in June, with prices rising 3.92 percent month-on-month.

Participants of the survey cut their GDP growth estimate for 2023 from a previous 3.8 percent to 3.7 percent while slashing the growth forecast for next year from 4.5 percent to 4.3 percent.

They expect the U.S. dollar/Turkish Lira exchange rate to be 28.46 at the end of 2023, an upward revision from the previous survey’s 26.18.

Respondents to the Central Bank survey also revised upward their current account deficit expectations for 2023 from $40.3 billion to $41.6 billion and for 2024 from $27 billion to $28.6 billion.