Turkish inflation forecast to sharply decline in 2023, 2024: Central bank

Ankara:  Governor of the Central Bank of Turkey, Sahap Kavcioglu announced the country’s year-end annual inflation for 2023 and 2024 is forecast to drop to 22.3 per cent and 8.8 per cent, respectively.

“Inflation expectations for 2023 have started to be updated downwards in many countries, as is the case in Türkiye,” Kavcioglu said when presenting a quarterly economic report.

He noted that growth rates show a recovery according to leading indicators, and the probability of a deep recession is considerably reduced, Xinhua news agency reported.

Also, a normalisation trend has started recently with a significant decline in energy prices, he said.

The government forecasts a gradual descent in inflation since related parameters have turned positive, Finance Minister Nureddin Nebati said.

“Costs began to fall. There is also a decrease in commodity prices, especially in food,” he told local media.

Turkey’s annual inflation fell sharply to 64.27 per cent in December 2022, after rising for 17 months and hitting nearly 85.5 per cent, a 24-year high, in October.

–IANS

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