Türkiye’s central bank on Thursday raised its inflation forecasts for 2023 and 2024, citing higher food and energy prices and a weaker currency.
The bank now expects inflation to reach 65 percent by the end of 2023, up from 58 percent in its previous projection. It also increased its forecast for 2024 to 36 percent from 33 percent.
Turkish Central Bank Governor Hafize Gaye Erkan said inflation will peak in May 2024 and then start to decline during a press conference, where she presented the bank’s last quarterly inflation report of the year.
Erkan said the upward revision was mainly due to higher import prices for food and energy this year. She also mentioned the rise in fuel prices, the depreciation of the Turkish lira, and the tax adjustments to cope with the financial needs caused by the Feb. 6 earthquakes.
« We are fighting inflation determinedly. Bringing high and volatile inflation under control will be a long and difficult process, » Erkan said.
« We will continue to use all tools with determination. The effects of monetary tightening spread over time, » she added.
Türkiye’s annual inflation climbed to 61.53 percent in September.
It has been facing persistent double-digit inflation since the end of 2019, making life harder for households across the country.
