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

The Turkish Central Bank governor announced on Thursday that the country’s year-end annual inflation for 2023 and 2024 is forecast to drop to 22.3 percent and 8.8 percent respectively.

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

Growth rates show a recovery according to leading indicators, and the probability of a deep recession is considerably reduced, Kavcioglu noted.

Also, a normalization 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, Turkish Treasury and Finance Minister Nureddin Nebati said Wednesday.

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

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

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