Inflation expectations improve in September, shows survey

ANKARA

Inflation expectations for the end of 2024 declined from 43.3 percent in August to 43.1 percent in September, a Central Bank survey has shown.

The 12-month ahead inflation expectations also fell from 28.1 percent to 27.5 percent, according to the monthly survey of market participants.

Consumer prices are expected to increase by 2.22 percent in September.

The annual inflation rate dropped from 61.78 percent in July to 51.97 percent in August, with monthly inflation advancing 2.47 percent, the Turkish Statistical Institute (TÜİK) reported on Sept. 13.

The Central Bank’s regular survey monitors the expectations of experts and decision-makers from financial and real sectors related to various economic variables.

Participants of the survey slashed their current account deficit forecast for the end of 2024 from the previous $25.48 billion to $22.17 billion.

Türkiye’s current account balance posted a surplus of $566 million in July, up from the previous month’s surplus of $330 million. The January-July current account deficit was $16.05 billion.

The Turkish economy is expected to grow 3.2 percent in 2024, a downward revision from August’s 3.4 percent, according to the survey.

The survey’s participants cut their GDP growth expectations for 2025 from 3.5 percent to 3.4 percent.

In the updated medium-term program unveiled last week, the government revised downward its GDP growth target for 2024 from 4 percent to 3.5 percent.

Its economic growth target for 2025 is now 4 percent, down from the previous program’s GDP expansion forecast of 4.5 percent.