Turkey’s Central Bank Governor forecasts inflation at 23.5 percent at the end of 2018
The Central Bank has announced the latest inflation report of the year. In the report the year-end inflation forecast was increased from 13.4 percent to 23.5 percent, while the food price inflation forecast was increased from 13 percent to 29.5 percent for 2018.
On the other hand, the inflation figures for 2019 and 2020 were forecasted at 15.2 percent and 9.3 respectively.
Mr. CETINKAYA, the Governor of the Central Bank also made following statements:
“Increasing returns in developed countries and strengthening of protectionist tendencies related to international trade have led to volatility in global financial markets.
The slowdown in credit growth has become more apparent in the third quarter.
Increasing inflation in sub-groups and high price increases even in product groups with relatively low exchange rate pass-through indicate that the pricing behavior has deteriorated significantly.
Producer inflation-induced cost pressures have a determining impact on consumer inflation.”
The Governor also shared following:
“The volatility in Turkish lira has recently declined due to the measures taken and the strong monetary tightening.
The indicators followed regarding the inflation trend and the pricing behavior indicate a notable deterioration in the underlying trend of inflation.
“The demand for imports is decreasing and we expect the contribution of net exports to growth to continue in the third quarter. The unemployment rate, which declined throughout 2017, has entered an upward trend since the second quarter of 2018”.
