Real sector’s inflation expectations fall, but households’ increase

ANKARA

Inflation expectations of the real sector continued to decline but households’ expectations rose for the first time in six months in February, a Central Bank survey has shown.

12-month-ahead annual inflation expectations decreased by 1.9 points to 41.9 percent for real sector, while increased by 0.4 points to 59.2 percent for households, said the Bank on Feb. 25.

Households’ inflation expectations constantly declined from September 2024 and January 2025.

The proportion of households expecting a fall in inflation in the next 12 months decreased by 2.5 points to 28.3 percent, said the bank.

Inflation expectations also fell by 0.1 points to 25.3 percent for market participants, according to the bank’s regular Sectoral Inflation Expectations survey.

Türkiye's annual inflation rate dropped to a 19-month low of 42.12 percent in January, with consumer prices rising 5.03 percent from the previous month, according to the latest official data.

In February, the Central Bank lifted its annual consumer inflation forecast for 2025 from the previous 21 percent to 24 percent, while keeping its forecast for 2026 unchanged at 12 percent.