Turkiye annual inflation to rebound to 47.3% after tax hikes, lira decline

A view of the Central Bank of the Republic of Turkiye (CBRT) building in Ankara, Turkiye on July 27, 2023 [Mustafa Çiftçi – Anadolu Agency]

Turkiye’s monthly inflation is seen at 9.1 per cent in July due to various tax hikes and the lira’s sharp depreciation, a Reuters poll showed.

According to the poll, the annual reading is expected to rebound sharply to 47.3 per cent after declining for eight months.

Economists’ year-end forecasts were also revised sharply higher to 59.9 per cent, as inflation is expected to continue climbing for the rest of the year, the poll added.

Turkiye’s Central Bank has hiked its policy rate by 900 basis points to 17.5 per cent at its two meetings under Governor Hafize Gaye Erkan, but the pace of tightening has remained below market expectations.

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