Turkish Inflation Expectations Increase
ANKARA (Reuters) – Turkish inflation expectations edged up in April for businesses and market participants, while remaining steady at 59.3% for households over the next 12 months, according to the central bank on Friday. This rise reflects the aftermath of market turmoil from the previous month.
The real sector’s inflation expectations increased by 0.6 points to 41.7% in April, based on the bank’s survey data. Meanwhile, market participants’ expectations rose by one percentage point to 25.6%, indicating a significant disparity compared to households.
The central bank had reversed its policy easing cycle last week, citing a slight increase in inflation expectations following a selloff of the lira and other Turkish assets linked to the arrest of Istanbul’s mayor. The bank raised its policy rate from 42.5% to 46%, stating: “Inflation expectations and pricing behaviour continue to pose risks to the disinflation process.”
Annual inflation had slowed to 38.1% in March, with the central bank projecting it to reach 24% by year-end.
Comments (2)
Ifeanyi Emmanuel Ani
13:49 - 27/04/2025
Interesting
Abdullahi Salihu Abdullahi
05:39 - 27/04/2025
Ok