Turkish inflation expectations for families remained unchanged at 59.3 % during the next 12 months in April, while companies and participants in the market witnessed an increase in inflation expectations, according to the central bank data issued on Friday.
The real sector expectations increased by 0.6 percentage points to 41.7 %, while the opinions of the market participants increased by one percentage to 25.6 %, indicating an increase in concerns about inflation.
In response to the growing inflation expectations, the central bank reversed the policy reduction course, raising the policy price to 46 % of 42.5 %. This is followed by a sale in liras and other Turkish assets caused by the arrest of the Istanbul Mayor last month.
The Central Bank indicated that “inflation and pricing behavior are still risks to the inflation” in its decision.
The annual inflation slowed to 38.1 % in March, and the central bank expects to reach 24 % by the end of the year.
