FAMAGUSTA GAZETTE – Inflation expectations in Türkiye showed mixed trends in March, according to the central bank’s “Sectoral Inflation Expectations” survey released Wednesday.
Market participants’ 12-month-ahead inflation expectations fell to 24.6%, down 0.7 percentage points from February, while the real sector’s expectations dropped 0.8 points to 41.1%. However, household expectations rose slightly by 0.1 points to 59.3%.
Treasury and Finance Minister Mehmet Simsek reassured that the impact of recent financial market volatility on inflation expectations would be short-term and limited.
He emphasized the government’s commitment to achieving price stability through its economic program.
The central bank reportedly sold $25 billion from its foreign currency reserves to stabilize the Turkish lira, which experienced a sharp decline of up to 14.5% against the dollar on March 19, coinciding with the arrest of Istanbul Mayor Ekrem Imamoglu.
The mayor’s detention on graft and terror-related charges has sparked mass protests and raised concerns over political stability.
Vice President Cevdet Yilmaz acknowledged the short-term economic impact of Imamoglu’s detention but downplayed its long-term effects, predicting only a 1-2 point deviation in inflation expectations due to recent exchange rate fluctuations. The government remains focused on mitigating market disruptions and maintaining economic stability.