Inflation expectations increased in TCMB's market survey

In the October Market Participants Survey conducted by the Central Bank of the Republic of Turkey with real sector and financial sector representatives and professionals, the year-end inflation expectation was 67.78 percent. The year-end inflation estimate in the September survey was 67.73 percent. In the October survey, the 12-month ahead CPI expectation was increased from 36.74 percent to 37.34 percent. In the Market Participants Survey conducted by the Central Bank of the Republic of Turkey (CBRT), the 12-month ahead inflation expectation was 37.34 percent. This expectation had been determined as 36.74 percent in the September survey. The expectation for the end of the year was also revised upwards very slightly. While the participants’ current year-end consumer inflation (CPI) expectation was 67.73 percent in the previous survey period, it was 67.78 percent in this survey period. The 24-month ahead CPI expectation increased from 20.63 percent to 21.17 percent in the October survey. Participants' year-end USD/TL exchange rate expectations increased from 19.51 to 19.82 in this survey. The 12-month exchange rate expectation increased from 22.07 to 23.61. Participants' 2022 growth expectation was 4.8 percent in the previous survey period, while it was 5.1 percent in this survey period. The 2023 growth expectation was reduced from 4.5 percent to 4.2 percent.