AGL 38.60 Increased By ▲ 1.03 (2.74%)
AIRLINK 131.48 Decreased By ▼ -1.02 (-0.77%)
BOP 5.59 Decreased By ▼ -0.05 (-0.89%)
CNERGY 3.85 Increased By ▲ 0.08 (2.12%)
DCL 8.74 Decreased By ▼ -0.13 (-1.47%)
DFML 40.80 Decreased By ▼ -0.20 (-0.49%)
DGKC 88.69 Decreased By ▼ -1.47 (-1.63%)
FCCL 35.25 Increased By ▲ 0.17 (0.48%)
FFBL 66.50 No Change ▼ 0.00 (0%)
FFL 10.66 Increased By ▲ 0.51 (5.02%)
HUBC 109.30 Increased By ▲ 2.90 (2.73%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.75 Decreased By ▼ -0.11 (-2.26%)
KOSM 7.03 Increased By ▲ 0.18 (2.63%)
MLCF 42.48 Increased By ▲ 0.68 (1.63%)
NBP 59.70 Increased By ▲ 1.12 (1.91%)
OGDC 183.85 Increased By ▲ 2.60 (1.43%)
PAEL 25.70 No Change ▼ 0.00 (0%)
PIBTL 5.90 Increased By ▲ 0.07 (1.2%)
PPL 147.75 Decreased By ▼ -0.65 (-0.44%)
PRL 23.51 Increased By ▲ 0.29 (1.25%)
PTC 16.49 Increased By ▲ 1.25 (8.2%)
SEARL 69.50 Increased By ▲ 0.71 (1.03%)
TELE 7.24 No Change ▼ 0.00 (0%)
TOMCL 35.80 Decreased By ▼ -0.20 (-0.56%)
TPLP 7.90 Increased By ▲ 0.50 (6.76%)
TREET 14.25 Increased By ▲ 0.01 (0.07%)
TRG 50.69 Decreased By ▼ -0.16 (-0.31%)
UNITY 26.81 Increased By ▲ 0.41 (1.55%)
WTL 1.23 Increased By ▲ 0.02 (1.65%)
BR100 9,817 Increased By 49 (0.5%)
BR30 29,777 Increased By 377.3 (1.28%)
KSE100 92,375 Increased By 437 (0.48%)
KSE30 28,855 Increased By 110.9 (0.39%)

ISTANBUL: Already rampant inflation in Turkey will rise further in the coming months before declining to around 27% by the end of the year, a Reuters poll showed on Monday, as forecasts soared after a currency crisis in 2021 sent prices rocketing.

Turkey's inflation surged to 36% in December after a series of interest rate cuts by the central bank, long sought by President Tayyip Erdogan, prompted the lira to lose 44% of its value against the dollar last year.

The annual consumer price index (CPI) was seen standing at 40% by the end of the first quarter and 39% by mid-year, according to the median estimate in the Jan. 10-14 Reuters poll.

Turkish cenbank to halt easing after stirring a crisis

Inflation was seen declining to 26.8% by the end of 2022, and to 15.4% in 2023, in sharp contrast to government expectations that inflation would decline to single digits by mid-2023.

Estimates for inflation at the end of 2022 ranged widely from 17% to as high as 46%.

Despite the government's recent policy of keeping interest rates low to boost exports and credit, some economists saw the central bank changing direction and hiking its policy rate in the future.

The median estimate for the one-week repo rate was for it to remain unchanged at 14% throughout this year, but seven of the 20 economists polled expected a cut while three predicted an increase - with the top estimate at 25%.

Erdogan has backed aggressive rate cuts to support his new programme that stresses exports and credit - despite soaring inflation and widespread criticism of the policy from economists and opposition lawmakers.

Authorities have recently said Turkey's biggest economic problem is the chronic current account deficit, largely due to Turkey's heavy import bill, which they say will improve as a result of the new economic plan.

However, economists still predict the deficit would amount to 2.1% of gross domestic product in 2022 and 2.3% in 2023.

Turkey's GDP growth was seen at 10.1% in 2021 as the economy rebounded from a downturn due to the pandemic, but the pace of expansion was seen dropping to 3.5% in 2022 and standing at 4.0% in 2023.

Comments

Comments are closed.