Inflation expectations continue to decline in June

ANKARA

Inflation expectations for the end of 2024 declined from 43.64 percent in May to 43.52 percent in June, the Central Bank’s Survey of Market Participants has shown.

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The 12-month ahead inflation expectations also eased from 33.21 percent to 31.79 percent.

The annual inflation rate quickened from 69.8 percent in April to 75.45 percent in May, with consumer prices rising 3.37 percent monthly, according to the latest official data.

Consumer prices are expected to increase by 2.52 percent in June.

Last month, the Central Bank has its inflation forecast from a previous 36 percent to 38 percent for the end of 2024.

The bank, on the other hand, kept its inflation forecasts for 2025 and 2026 unchanged at 14 percent and 9 percent, respectively.

Participants of the Central Bank’s monthly survey expect the Turkish economy to expand by 3.3 percent this year and 3.7 percent in 2025, unchanged from May.

They also lowered their current account deficit expectations for 2024 from a previous $30.5 billion to $28.99 billion and from $28.74 billion to $28.44 billion for 2025.

The 12-month trailing current account deficit was $31.46 billion in April.

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The Central Bank also reported that Türkiye’s external assets declined by 2.9 percent compared to the end of 2023 to $323.1 billion as of April.

Liabilities against non-residents recorded $648.4 billion, indicating an increase of 6.6 percent.

The net international investment position, defined as the difference between Türkiye’s external assets and liabilities, which was minus $2725.7 billion at the end of 2023, was minus $325.3 billion in April.