MNI BRIEF: Turkish Household Inflation Expectations Still High
MNI (LONDON) - Turkish households’ inflation expectations rose slightly in August, Koc University’s TEBA survey showed, despite average annual inflation falling from 71.60% in June to 61.78% in July.
Year-end inflation expectations stood at 96% in August, versus 93% in July. Twelve-month forward inflation expectations moved up 1% to 101% over the same period, while annual inflation expectations were unchanged at 113%. The Central Bank of Turkey held policy rate at 50% earlier this month, as it targets a year-end inflation rate of 43%. (See MNI EM CBRTWATCH: Rates Held, Sticky Services Inflation Cited)
“The change in 12-month forward expectations aligns with the Central Bank of Turkey's (CBRT) sectoral inflation expectations survey released in August,” the study’s authors said in a statement. “Over the past two months, a similar rise in household expectations has been noted in the CBRT survey. However, the expectation levels in the TEBA survey remain higher.”