Citing rising costs of imports and the impact of a weak Turkish lira, the bank said it sees consumer inflation gradually falling to single digits in two years.
CBRT governor Sahap Kavcioglu said inflation would slow to 19.2 per cent toward the end of next year before reaching 8.8 per cent in 2024. The bank’s previous estimate for 2023 was 12.9 per cent, according to Turkish media reports.
The country’s consumer price index has surged since last autumn as the lira weakened after the central bank in September embarked on a 500 basis-point easing cycle.
The consumer price index (CPI) remained above the foreseen trend in June but core inflation showed a more positive outlook, Kavcioglu said.
The contribution of demand in lowering inflation will become more significant in the second half of this year, he said.
President Recep Tayyip Erdogan has vowed that his government would continue lowering interest rates rather than increasing them.
Turkey is the only country in the world where “there is no talk of recession”, Kavcioglu added.
ALCHEMPro News Desk (DS)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
