Turkey’s central bank published data on inflation expectations:

• households expect inflation of 71.6% for the coming 12 months. This is down 1.5% on the previous month.
• market participants expect inflation of 27.5% for the coming 12 months. This is down 1.2% on the previous month.
• the real sector expects inflation of 51.1% for the coming 12 months. This is down 2.7% on the previous month.

Turkey’s inflation (CPI) has fallen from over 80% in late 2022 to 52% in August 2024.

Turkey’s policy rate (the one-week repo auction rate) is currently 50%. The central bank held policy rates steady last week – pointing out that domestic
demand is continuing to slow with a diminishing inflationary impact.

They pointed to inflation expectations and pricing behaviour continuing to pose inflation risks. The central bank said it will keep monetary policy tight until it sees a significant and sustained decline in inflation. The bank’s medium term inflation target is 5%.