Households’ inflation expectations deteriorate in August

ANKARA

In August, the 12-month-ahead annual inflation expectations of households increased by 0.64 percentage points to 45.58 percent compared to the previous month, according to a Central Bank survey on Aug. 24.

The product/service groups that households assessed as having increased the most in price over the past year and expected to increase the most in the next 12 months were “food” and “fuel and energy,” according to the survey.

The share of participants who consider “food” among the product/service groups with the highest price increase decreased by 0.4 percentage points compared to the previous month, reaching 39.3 percent.

The expectation for the increase in house prices at the end of the next 12 months decreased by 0.36 percentage points compared to the previous month, standing at 32.13 percent.

The share of survey participants choosing gold as their preferred investment rose 1 percentage point from the previous month to 41.3 percent, while preference for real estate (house, shop, land, etc.) fell 1.4 percentage points to 37.1 percent.

Meanwhile, 12-month-ahead annual inflation expectations, compared to the previous month, decreased by 0.26 points to 23.69 percent for market participants but increased by 0.30 points to 32.8 percent for the real sector.