reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TRCPI%3DECI for monthly poll
reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TRCPIY%3DECI for annual poll
Year-end forecast at 42.7%
ISTANBUL, February 28 (Reuters) – Turkey’s annual inflation is expected to climb to 65.7% in February, a monthly rise of 3.7%, due to food and service sector prices, with the annual rate declining to 42/7% by the end of 2024, a Reuters survey. shown on Wednesday.
The average estimate of 14 economists for annual inflation was 65.7%, with forecasts ranging from 65.1% to 67.4%. On a monthly basis, prices were expected to rise 3.7%, with forecasts ranging from 3.3% to 4.1%.
Economists said that in addition to the increase in food prices, February inflation was also driven by the continued impact of the minimum wage increase on the services sector.
In January, inflation climbed 6.7% in part due to a big minimum wage jump and a set of New Year price updates.
Turkey’s central bank has raised rates by 3,650 basis points since June, but has now paused its tightening cycle, saying the current policy rate of 45% is enough to bring down inflation.
This month, the central bank maintained its end-of-year inflation target of 36% and promised to keep policy tight for longer to bring inflation down to an anticipated path.
The Reuters poll showed annual inflation falling to 42.7% by year-end, higher than the central bank’s target, based on the median estimate. Forecasts ranged between 35% and 45%.
The Turkish currency lost more than 36% of its value last year and 5.3% so far this year.
The Turkish Statistical Institute will release February inflation data at 0700 GMT on March 4.
(Reporting by Ezgi Erkoyun; Editing by Daren Butler)
((ezgi.erkoyun@thomsonreuters.com; +90-212-350 7051; Reuters Messaging: ezgi.erkoyun.thomsonreuters.com@reuters.net;))
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