A new 24-year high is expected in October in inflation
The Consumer Price Index (CPI) is expected to rise by 3.6 percent monthly, to 85.6 percent annually, which is the new 24-year high, with the effect of the accumulated depreciation in TL, led by food and clothing prices.
Annual inflation forecasts for October range from 83.8 percent to 87.4 percent in the Reuters survey of 12 respondents. The last time the CPI increased was 90.6 percent in the June 1998 period.
Noting that economic activity continues to lose momentum despite rising inflation, the Central Bank (CBRT) cut the policy rate by 150 basis points to 10.5 percent in response to the president’s single-digit interest call. Tayyip Erdoğan.
In the survey, monthly inflation is expected to be 3.6 percent; Estimates are in the range of 2.6 to 4.6 percent. In addition to the rise in food and clothing prices with the end of the summer season, the rise in household and housing items is expected to take effect in the monthly increase.
In September, Turkstat announced inflation at 83.45 percent.
YEAR-END ESTIMATE 70.25 PERCENT
In the survey completed today by Reuters, the year-end forecast was 70.25 percent. In surveys conducted throughout the year, year-end forecasts for 2022 rose sharply due to the impact of the Russian-Ukrainian war on commodity prices and the depreciation of the TL.
In the latest inflation report for the year, the CBRT said inflation would decline rapidly from its current level after November, but raised its year-end forecast to 65.2 percent.
The government aims to combat inflation by turning the chronic current account deficit into a surplus by implementing an economic program that supports low-interest production and exports.
The Turkish Confederation of Trade Unions (Türk-İş) stated that food inflation calculated in Ankara increased by 2.48 percent in October compared to the previous month; He explained that the hunger limit was 7,425 TL and 1,925 TL above the current minimum wage.
TurkStat will announce October inflation data at 1000 on November 3. (REUTERS)
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
