The 12-month-ahead annual inflation expectations of households decreased by 1.19 percentage points to 44.94 percent in July compared to the previous month, a Central Bank survey showed on July 24.
The percentage of households expecting the inflation rate to decrease in the next 12 months increased by 1.93 points to 17.63 percent, according to the survey.
Meanwhile, 12-month-ahead annual inflation expectations increased by 0.14 points to 23.95 percent for market participants but decreased by 0.60 points to 32.50 percent for the real sector.
The Central Bank’s Sectoral Inflation Expectations are obtained by compiling the 12-month-ahead annual consumer inflation expectations of financial and real sector experts, manufacturing industry firms and households.
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,” the survey showed. The share of participants who consider “food” among the product/service groups with the highest price increase rose by 0.4 percentage points month-on-month to 39.7 percent.
In June, Türkiye’s annual consumer inflation eased to 32.11 percent from 32.61 percent in May. The consumer price index (CPI) rose 0.99 percent on a monthly basis.
In the accompanying statement to the Monetary Policy Committee’s July 23 interest rate decision, the Central Bank said that the underlying trend of inflation decreased slightly in June. “Leading indicators suggest that the underlying trend will rise temporarily in July,” it warned.
The Central Bank kept its policy rate unchanged at 37 percent, as the markets expected, extending its monetary policy pause for a fourth consecutive meeting.
“Gold remained the most preferred investment option, although the share of participants who said they would buy it fell by 4 percentage points from the previous month to 40.3 percent,” the survey said.
The percentage of participants indicating that they would buy “a house/shop/land, etc.,” which ranked second, increased by 1.4 percentage points month-on-month to 38.5 percent.
The expectation for the increase in house prices at the end of the next 12 months decreased by 1.33 percentage points from the previous survey, standing at 32.49 percent.
The expectation for the U.S. dollar/Turkish Lira exchange rate in 12 months increased by 0.31 liras from a month earlier to 52.98 liras.
