Turkish Central Bank increases its annual inflation forecast to 68%

The inflation rate in Türkiye forecast for the end of this year has been adjusted upward to 68.01%, according to the data released by the Central Bank of the country, Report informs referring to TASS.

“In the last report [for September], the consumer price index [CPI] at the end of the year was calculated at 67.22%. According to current statistics [for October], the CPI at the end of the year will be 68.01%,” the Central Bank said.

At the same time, CPI calculations for the future 12 and 24 months from the current moment indicate that inflation will be 45.28% and 25.82%, respectively.

On September 21, the Turkish Central Bank once again raised the discount rate from 25% to 30%. This decision was made as part of tightening monetary policy with the goal of achieving disinflation as quickly as possible.

Until June 2023, the rate remained at 8.5%. According to the political leadership of Türkiye, maintaining a low rate in a certain future should have curbed inflation, but this didn’t happen. Prices continued to rise, and the national currency depreciated.