Turkish Central Bank expects inflation at almost 67% by end of year

Inflation in Turkiye in 2022 is expected to reach 66.80%, the country's Central Bank said following a survey of financial market participants, Report informs via TASS.

Previously, they predicted inflation at 68.06%, the regulator said in a statement.

The head of the Central Bank of Turkiye, Sahap Kavcioglu, reported in early December that inflation in the country is expected to reach 65.2% by the end of this year. The initial forecast was 42.8%, then the figure was revised to 60.4%.

According to the National Institute of Statistics, in November, inflation in Turkiye on an annualized basis amounted to 84.39% compared to 85.51% a month earlier. At the same time, the independent Inflation Analysis Group estimated it at 170.7% in the country.

Since December last year, the Turkish authorities have been pursuing the so-called new economic policy, which focuses on strengthening the Turkish lira. However, it has depreciated by more than 25% since the beginning of the year. The Turkish Central Bank from the end of last year until August this year kept the key rate at 14%, then began to reduce it. Now it is 10.5%.

According to the results of a survey of financial market participants, Turkiye will end the outgoing year at a rate of 18.78 lira against one US dollar. Previously, they predicted a rate of 19.54 lira to the dollar.