Central Bank has not met inflation forecast targets for last 11 years

Announcing the third inflation report of the year, Central Bank Governor said that they had raised their inflation forecasts for the end of the year to 60.4 percent. In the last report announced report, this figure was 42.8 percent for the end of 2022.

In the first report, announced on January 27, this figure was 23.2 percent. In the April report, it was increased to 42.8 percent.

The CBRT’s medium-term inflation target is currently at 5 percent. However, the last time the Central Bank had met the target for inflation (6.5 percent) was in 2010. Although its legal duty is price stability, CBRT, which has remained far from the level it has set for 11 years, also started with a 5 percent target in 2021, then increased its forecasts to 9.4, 12.2, 14.1 and finally 18.4 percent, respectively.

GOVERNOR OF CENTRAL BANK: WE CAN TAKE NEW MEASURES

Announcing the inflation report, CBRT President said that inflation was expected to be 60.4 percent at the end of 2022 and would reach 8.8 percent at the end of 2024 after decreasing to 19.2 percent at the end of 2023.

The previous inflation forecast was at 42.8 percent for the end of this year, 12.9 percent for the end of next year and 8.3 percent for the end of 2024.

The governor said that they had raised the food inflation forecast from 49 percent to 71.3 percent, and they had reduced the oil forecast from $ 102 to $ 99.6.

The Governor went on to say, “We will continue to take steps to ensure that all rates converge to the policy rate. Our lira strategy is going well. We can take some measures to make it more effective in the process.”