According to a Reuters poll, inflation in Turkey will break 24-year record

The Turkish Statistical Institute (TURKSTAT) is expected to release its July inflation data on August 3, while Reuters has shared the results of a survey it conducted with 11 respondents. Based on the survey, annual inflation forecasts range from 79.45 percent to 82.5 percent. According to a Reuters poll of experts, Turkey’s inflation will reach 82.5 percent in July, surpassing the peak of 24 years.

The last time the consumer price index (CPI) increased by 81.4 percent was in August 1998. In June, annual inflation had risen to 78.62 percent, led by transport and food. Monthly inflation is expected to rise by 2.9 percent in the survey. Declining fuel prices are cited as the main reason why the monthly increase slowed down compared to the previous month.

The year-end forecast is also 70 percent, according to a Reuters poll. In the previous month’s survey, the year-end forecast was at 69.5 percent. Yesterday, the Central Bank (MB) also raised its year-end inflation forecast to 60.4 percent.

EXPECTATION NOT REALIZED

Global central banks have taken steps to tighten their controls on inflation. On the contrary, the Turkish economy has been holding the reduced interest rate steady for months. Therefore, the TL has lost almost 6.8 percent since the beginning of the month and has stood at 18 levels for the first time since the exchange rate crisis in December 2021.