Turkey's year-end inflation forecast rises to 26%
Turkey's year-end consumer inflation forecast has risen to 26% in the central bank's market participants survey. The previous reading was 25.3%, and higher oil and fuel prices have pushed expectations up.
The Central Bank of the Republic of Turkey has published the results of its monthly market participants survey. The year-end consumer inflation forecast has been revised up to 26% from 25.3% in the previous month. Inflation expectations 12 months ahead stand at 19.4%.
Respondents linked the upward revision to higher global oil prices, fuel pump hikes and the impact of the Iran war on global costs. The growth forecast for the current year was kept at 3.4%, while the year-end forecast for the dollar/lira rate edged higher.
The central bank held its policy rate at the last meeting. The survey suggests policy may need to stay hawkish to preserve the three-year disinflation path outlined by governor Karahan. The Monetary Policy Committee meets again in mid-June.
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