Turkey’s inflation is expected to rise to 19.7 percent in September, according to a Reuters poll published on Wednesday, as the country struggles with soaring food prices and the lira plunged to a new record low after the central bank slashed interest rates by a full percentage point.
The annual inflation expectation in the country in September stood at 19.7 percent, in a range of 18.94 and 20.90 percent, the Reuters poll showed, which features the median forecast of 17 economists, said.
The poll arrives as the lira lost around 16 percent this year, declining sharply through September following a decision by the central bank Governor Kavcıoğlu to cut the benchmark interest rate to 18 percent last week, prompting the lira to hit a record low of 8.8995 against the dollar.
Turkish inflation registered at 19.25 percent in August, its highest level since April 2019.
Food and utilities will lead the rise in headline inflation, while core inflation could still decline slightly, Özlem Bayraktar, chief economist at Tacirler Yatırım, told Reuters.
“If there is an additional upward move in the exchange rate, this will affect both core and headline inflation,” she added, noting that the current exchange rate levels increase the upward risks for inflation.
Reuters