MNI BRIEF: CBRT Publishes New Inflation Survey, Expectations Ease
Household, market participants’ and real sector 12-month ahead inflation expectations have declined “significantly” following the adoption since March of a “decisive” hawkish monetary policy stance, the Central Bank of Turkey said in a blog post Friday to announce the publication of its new Sectoral Inflation Expectations survey. (See MNI EM CBRT WATCH: Rates Held At 50%, Inflation Seen Trending Down)
Household inflation expectations fell to 71.5% this month, the Bank reported, while real sector inflation expectations have hovered around 55% between January and June this year. Market participants’ expectations stood at 31.8% as of June 2024. The CBRT expects inflation to average 38% by the end of this year, falling to 14% in 2025.
“Although the levels of the three sectors’ 12-month-ahead inflation expectations differ, the recent downtrend in expectations is similar. The CBRT’s decisive stance in monetary policy is expected to sustain the improvement in inflation expectations,” the Bank said.