Inflation expectation rises above 70% for the first time

The Central Bank of the Republic of Turkey published the market participants survey for August. In the survey, inflation expectations for the end of the year exceeded 70 percent for the first time. The increase in the inflation expectations of market participants continued in August as well.

According to the market participants survey organized by the Central Bank of the Republic of Turkey, the inflation expectation for the next 12 months was 41.99 percent.

In the previous survey period, this expectation was determined as 40.23 percent.

The year-end inflation expectation rose from 69.94 percent to 70.60 percent.

A limited increase was observed in inflation expectations for the next 24 months. Accordingly, the expectation, which was 24.27 percent in the previous survey period, rose to 24.35 percent.

USD/TL expectation exceeded 19

In the survey, it was seen that the expectations of market participants regarding the dollar/TL exchange rate were also revised upwards.

Accordingly, the year-end USD/TL rate expectation of the participants in August was 19.65. In the previous survey period, this expectation was 18.99.

The expectation of USD/TL exchange rate after 12 months increased to 22.03. In July, the expectations of the participants were determined as 20.92.