Turkiye’s CBRT predicts inflation to hit 60.4% by end of 2022

The Central Bank of the Republic of Turkiye (CBRT) recently predicted that inflation will hit 60.4 per cent by the end of this year, up from its 42.8 per cent projected three months ago. It was nearly 79 per cent in June. Inflation driven by the impact of the Ukraine war and soaring commodity costs runs at a 24-year high, CBRT’s quarterly inflation report said.

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.

The Central Bank of the Republic of Turkey (CBRT) has predicted that inflation will hit 60.4 per cent by the end of this year, up from its 42.8 per cent projected three months ago. It was nearly 79 per cent in June. Inflation driven by the impact of the Ukraine war and soaring commodity costs runs at a 24-year high, CBRT’s quarterly inflation report said.

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.

Fibre2Fashion News Desk (DS)