Turkish households’ expectations for annual inflation 12 months ahead dropped for the first time since June, according to the central bank on Wednesday.
The expectations stood at 71.6% in September, the Central Bank of the Republic of Türkiye (CBRT) said, down 1.5 points from a month earlier.
Market participants’ expectations for annual inflation 12 months ahead fell by 1.2 points to 27.5% in September, the data showed, leaving a wide gap with households.
The real sector’s inflation expectations for the same period dropped 2.7 points to 51.1% in September, it also showed.
The central bank has said that one factor determining when it will begin easing policy is the extent to which households’ and the real sector’s expectations converge with its and the market’s view.
Annual inflation dipped below 52% in August, compared to its peak of 75% this May. The government forecasts it will fall below 42% by year-end.
The central bank has lifted its key policy rate by 4,150 basis points since June 2023 to counter overheated demand, the main driver of inflation.
It has held the one-week repo rate unchanged at 50% since this March and said it remained highly attentive to inflation risks.
